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Offering 1 million square feet of premium office space to cater for high-impact projects

Penang, May 4, 2023 – The Penang State Government unveils its plans for the establishment of its Integrated Circuit (IC) Design and Digital Park which will offer a total of 1 million square feet of premium office space (including existing Innoplex building within the area). Solidifying Penang’s position as a preferred investment destination for businesses and entrepreneurs in these sectors, this park is specifically catered to house high-impact activities including IC Design, R&D, Global Business Services (GBS), digital technologies investments, and a circular digital economy ecosystem.

Encompassing 105-acre in the Bayan Lepas Industrial Park, the project consists of two phases. The first phase involves the on-going construction of two pioneering office buildings, GBS By The Sea and GBS TechSpace, with 350,000 square feet of premium office space at a total cost of RM347 million. Equipped with high-spec building features, top-notch engineering lab facilities, and parking accommodations for up to 1,000 vehicles, the first phase is scheduled to be completed by the fourth quarter of 2024.

The second phase of the park involves an establishment of an additional building named GBS@TechnoPlex which will cost approximately RM308 million and provide an additional 500,000 square feet to the project by 2027.

Furthermore, the Penang State Government is currently formulating an incentive package to strategic investors who are interested in further enhancing and complementing the park. Such incentives are intended to support Penang’s existing ecosystem and investment attractiveness within the nation and globally.

Penang IC Design and Digital Park is committed to delivering exceptional infrastructure, facilities, and amenities, fostering a conducive and intelligent working environment for both businesses and residents. Hence, plans are in progress to enhance the park with modern amenities featuring safe pedestrian-friendly walkways, bicycle lanes, park-and-ride facilities, dedicated spaces for outdoor recreational activities, and a local eatery. To ease the connectivity and facilitate access to public amenities within the park, shared micromobility services like electronic scooters and bicycles will be implemented.

Penang State Government continuously strives to be at the forefront of the digital economy sector through the establishment of a series of GBS Nodes. In the past, the State has established its own GBS buildings which are first of its kind in Malaysia, namely GBS@Mayang and GBS@Mahsuri, signifying the State’s commitment towards a robust ecosystem for digital innovation.

With the digital economy projected to contribute 25.5% to Malaysia’s GDP, Penang currently hosts 200 Malaysia Digital status companies, predominantly from foreign direct investments, showcasing Penang’s attractiveness in this sector. Specifically, Penang has attracted over 20 global IC design companies, such as Intel, Motorola, AMD, Microchip, UST Global, Siemens, Zebra, Lattice, Synopsys, Efinix, StarFive, over the past 30 years, which creates high-value job opportunities. In addition, Penang also hosts several homegrown IC design corporations, such as SkyeChip, Oppstar Technology, and Infinecs Systems, among others.

The Chief Minister of Penang, Right Honorable Mr. Chow Kon Yeow stated, “Banking on the five decades of industrial excellence, Penang is making steady progress in cementing its position as the Silicon Valley of the East. As more businesses respond to the changing global situation, it is important that Penang continues to provide services that elevate us up the value chain.”

“To further promote IC design, the State is offering a subsided rental rate for office space. In addition, we will be applying to Federal Government to obtain the incentive/grant to strengthen the ecosystem. As such, these will also be included in the incentive package that will be announced subsequently.”

“With the 1 million square feet of premium office space backed by the State Government, poised to be the largest in the nation, we commit to continue delivering exceptional infrastructure, conducive facilities, and attractive amenities to anchor Penang’s pioneer position in the IC design and digital industries,” Chow added.

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About InvestPenang
InvestPenang is the Penang State Government’s principal agency for the promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously supporting business activities in the State through foreign and local investments, including spawning viable new growth centers. To realize its objectives, InvestPenang also runs initiatives like the SMART Penang Center (providing assistance to SMEs), Penang CAT Center (for talent attraction and retention), and Global Business Services (GBS) Focus Group (promoting and developing digital economy). For more information, please visit https://investpenang.gov.my/ and follow InvestPenang’s social media channels: Facebook; LinkedIn.

About Penang Development Corporation
The Penang Development Corporation (PDC) was established in 1969 as the leading development agency for the Penang State Government. PDC has been tasked to spearhead the socio-economic growth, create employment opportunities and improve the quality of life in Penang. PDC’s main activities include the development of industrial parks, townships and affordable housing. Since its inception, PDC’s strategies in industrial and housing development have enabled Penang to position itself as a leading industrial, tourism and services hub in the region. For more information, please visit http://www.pdc.gov.my/ and follow PDC’s Facebook.

For media enquiries, please contact
InvestPenang
Elaine Cheah / Arief Ferdaus
elaine@investpenang.gov.my/ arief@investpenang.gov.my
+604-6468833