By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 3 November 2026
Who should develop Batu Kawan Industrial Park 2 (BKIP2) is being questioned again. Former Chief Minister Lim Guan Eng, the Air Putih assemblyman, asked in the state assembly on 2 November 2026 whether the Penang Development Corporation (PDC) can carry out the 1,142-acre project on its own, and whether it should be opened to private-sector participation to bring in funds and speed up development.
PDC took full control of BKIP2 in July 2026 after three tender attempts failed. Here is the background and what the industrial park means for homes in Batu Kawan.
BKIP2 at a glance
| Item | Details |
|---|---|
| Location | Byram, Batu Kawan |
| Size | 1,142 acres, of which 872 acres would be available for investors (as cited by Lim Guan Eng); the state has described the landbank as about 1,300 acres |
| Developer | Penang Development Corporation (PDC), after its board decided on 20 July 2026 to take full control |
| Rollout | In phases, with about 200 acres made available each year |
| Condition | Chief Minister Chow Kon Yeow said the bridge linking the development area must be completed first |
How BKIP2 got here
- 2023: PDC signed a joint development agreement with Umech Land Sdn Bhd, which was to pay about RM646 million for 559 acres of land at Byram. The agreement was later terminated.
- 2024: An open request for proposal drew a bid of RM818 million from a consortium led by IJM Properties, with Aspen Vision All and Mettiz Capital. PDC rejected it because it did not meet five of nine main requirements.
- 2025: A second request for proposal could not go ahead after the winning bidder’s partner withdrew.
- July 2026: After three failed rounds, PDC decided to develop BKIP2 itself, in phases.
- November 2026: Lim questioned PDC’s ability to carry out the project alone and suggested private-sector participation. He also noted the RM172 million gap between the earlier RM646 million direct deal and the RM818 million bid.
No response from the state government to Lim’s latest remarks had been reported at the time of writing.
Why BKIP2 matters
Batu Kawan’s existing industrial parks are filling up with semiconductor and electronics plants. Recent examples include Estek Automation’s RM20 million plant and PEN S J’s US$70 million plant. BKIP2 is the next big block of industrial land for new investors, and Penang produced 52.6% of Malaysia’s exports in September 2026.
How fast BKIP2 is developed affects how quickly new factories, and the jobs that come with them, arrive in south Seberang Perai. Whether PDC develops it alone or with a private partner, the plan is for land to be released in phases over several years.
What it means for Batu Kawan homes
More industrial land means more engineers, technicians and production staff looking for homes near work over the coming years. Today’s Batu Kawan market already has a range of condominiums and landed homes:
| Project | Type | Indicative price | Completion |
|---|---|---|---|
| VERSA | Condominium | From RM453,000 | 2027 |
| Vi Residence | Condominium | RM480,000–RM580,000 | 2030 |
| Mezon | Condominium | RM595,000–RM856,000 | 2030 |
| Eco Sun Everine | 2-storey terraced house | From RM740,800 | Q4 2028 |
| Eco Horizon | Semi-detached and terraced houses | RM901,800–RM1,664,000 | Phase 11 completed; Phase 10 Q4 2026; Dawson 2028 |
| Viluxe Courtyard Collection | 2.5-storey courtyard terrace | From RM1,421,700 | Q4 2028 |
See all projects on the Batu Kawan area page. Business owners looking for factory space can browse our Penang industrial projects.
Frequently asked questions
Who is developing Batu Kawan Industrial Park 2?
The Penang Development Corporation (PDC), which took full control in July 2026 after three failed tender rounds.
How big is BKIP2?
About 1,142 acres according to Lim Guan Eng, with 872 acres for investors. The state has described the Byram landbank as about 1,300 acres.
Why is it being questioned?
Lim Guan Eng asked whether PDC can carry out the project alone and suggested private-sector participation could bring in funds and speed it up.
When will BKIP2 land be available?
PDC plans to release about 200 acres a year, after the bridge linking the area is completed. No completion date has been given.
Looking for a home in Batu Kawan?
I can send the latest price lists for condominiums and landed homes in Batu Kawan. WhatsApp or call +60 10-313 9113.
Sources
- Malay Mail: Lim Guan Eng urges Penang govt to freeze tax hikes, scrutinise major projects
- The Star: Penang Development Corp to take full control of BKIP2 development, says CM Chow
- Penang Today: PDC to develop BKIP2 itself after three failed tender rounds
- EdgeProp: BKIP2 to go for another round of bidding after second RFP fails
This article is general information based on state assembly statements and published reports as of 3 November 2026. Plans and figures may change. It is not investment advice; project prices are indicative and depend on availability.