Knight Frank Malaysia (KFM) announce its exclusive appointment for the sale of a 100-acre freehold industrial land in Prai, Penang. This rare and highly coveted site is positioned to attract significant interest from local and international investors looking to tap into the thriving industrial market in Penang.

According to Allan Sim, Executive Director of Land & Industrial Solutions at Knight Frank Malaysia, "Penang has long been recognized as one of Malaysia’s key industrial hotspots, particularly for the electronics and electrical (E&E) industry. Since the establishment of the Penang Development Corporation (PDC) 50 years ago, Penang has consistently evolved as a crucial investment destination. We are confident that the state will continue to play a prominent role in shaping its industrial real estate as an important platform for international and local industries." 

Foreign Direct Investment

Malaysia has established itself as a prime destination for foreign investment through strategic initiatives. Its location in Southeast Asia offers access to key markets, while a diversified economy and investor-friendly policies, including tax incentives and sector-specific benefits, attract global businesses. Continuous infrastructure development and active participation in trade agreements like CPTPP and RCEP enhance market access. The government also invests in workforce development and promotes the country through agencies like MIDA, ensuring Malaysia remains competitive and appealing to investors.

Through ongoing efforts to meet rapidly changing industrial demands, Malaysia has successfully attracted international investments from Asia, America, and Europe. Data from the Malaysian Investment Development Authority (MIDA) indicates that Malaysia's foreign investment value doubled in 2023 compared to 2019/2020, when the pandemic impacted global economies.

Source: Malaysia Investment Development Authority

Narrowing into the approved foreign investment by state, Penang have always been one of top five state receiving most FDIs. Malaysia Investment Development Authority reported a total of RM71.9 billion foreign investment to Malaysia for the year 2023 being the highest for the second time for past 5 years, the earlier in year 2021 with a total of RM83.5 bil.

Source: Malaysia Investment Development Authority

Penang had always experienced a scarcity of industrial land with the ongoing demand for industrial land which exceeds the ready supply. Industrial land in Penang is predominantly managed by the state’s development agency, Penang Development Corporation (PDC), with a majority of available sites under lease agreements of up to 60 years.

As Datuk Aziz Bakar, CEO of PDC, mentioned, "In response to technological advancements and challenges in acquiring new land, PDC is adopting a 60-year lease concept for industrial land." 

Foreign Direct Investment is relative to the availability of ready amenities to receive investments, industrialist requires ready real estate, sufficient utilities (electricity, water, telecommunication cables) and good road connectivity amongst other factors. These phenomena have resulted Kedah the neighbouring state to have benefited from the rapid influx of FDI observed from the graph above, Kedah made a huge leap from RM5bil of FDI in 2020 to RM68.3bil of FDI in 2021. 

Mark Saw, Executive Director and Head of Knight Frank Penang Branch, expressed his enthusiasm for the sale, saying, "This industrial site is truly one of a kind. It may be one of the largest privately held freehold industrial lands in Penang, and it is fully equipped with high power and water capacity. It’s strategically located with excellent road connectivity and is in close proximity to major seaports, making it an ideal site for industrial development, logistics, warehousing, and large-scale manufacturing operations." 

Strategic Location and Infrastructure Advantage

The 100-acre site in Prai presents an exceptional opportunity for immediate industrial development. It comes equipped with essential infrastructure, including substantial electricity capacity, water supply, and a gas pipeline. A nearby TNB substation could provide additional power if required, further enhancing the site’s readiness for industrial operations.

The site’s proximity to Penang Port – including its terminals and wharves handling break-bulk, dry-bulk, and liquid bulk cargo – ensures easy access to international import and export markets. Furthermore, the site enjoys excellent road connectivity via the North-South Expressway, Butterworth-Kulim Expressway, and Penang Bridge, facilitating smooth transportation for both passenger and commercial vehicles.

Located approximately 2km away from Penang Sentral, the transportation hub of Penang which caters traveling across Peninsular Malaysia (from Johor up to Perlis) via train and bus. Penang Sentral is also known for its ferry services ferrying multi generations since 1920 to and fro between the mainland and the island. Additionally, North Butterworth Terminal Container (NBTC) which links to Penang Port also within the close vicinity further improve cargo movements across state and aboard. 

Upcoming Infrastructure Developments

The ongoing rejuvenation of Penang’s waterfronts under the Penang Bay project is set to transform the state into a new economic zone compliant with Sustainable Development Goals (SDGs). This initiative is expected to further elevate the region’s growth prospects and offer new opportunities for industrial and commercial developments.

As part of the Penang Transport Master Plan, the upcoming Butterworth LRT Station at Penang Sentral, located just 4 kilometers from the site, will provide enhanced connectivity between key locations on the island and the mainland, including Bayan Lepas, George Town and Penang International Airport. This will further boost the site’s accessibility, making it even more attractive to potential investors and future workforce.

Recently, Penang International Airport expansion with an estimate of RM1.55 billion, currently Penang International Airport have 19 direct flights including Thailand (Phuket), China (Guangzhou, Xiamen, Shanghai, Shenzhen, Chongqing and Kunming), Indonesia (Medan, Jakarta, Surabaya and Banda Aceh), Taiwan (Taipei), Vietnam (Ho Chin Minh City), Hong Kong and Qatar (Doha).

This expansion would further improve the existing airport’s capacity to 12 million passengers per annum from 6.5 million passengers per annum placing Penang more accessible internationally, alongside the upcoming LRT, these infrastructures will further elevate connectivity to the site.

Another infrastructure news to take note is Penang Port is awaiting government approval for RM2.2 bil expansion plan for North Butterworth Container Terminal. As of now, Penang Port’s quayside capacity stands at 2.3 million twenty-foot equivalent units (TEUs), with plans to increase to 4.1 million TEUs by 2045-2050. 

Knight Frank Malaysia, a leading global property consultancy, has a strong track record in facilitating successful transactions in the industrial sector. With their extensive market knowledge and expertise, they are well-positioned to identify and secure the right buyers for Ann Joo’s prime industrial land in Prai. For more information on this exceptional industrial land offering in Prai, Penang, or to schedule a viewing, please contact Knight Frank Malaysia.

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