Given the sluggish property market in Malaysia, two upcoming large-scale projects in Penang with a combined gross development value of RM11.3 billion have been postponed.
Intended to house firms from the business process outsourcing (BPO) industry, the RM1.3 billion BPO Prime in Bayan Baru was targeted for completion by 2019, but it has been deferred indefinitely. As a result, the developers also held back the ground-breaking for Penang International Technology Park (PITP), a 83.4ha development that was supposed to commence following the completion of the other project.
Originally, the state’s investment arm Penang Development Corporation (PDC) inked a memorandum of understanding with Temasek and Economic Development Innovations Singapore Pte Ltd (EDIS) in May 2014. Under the contract, PDC will hold a 51 percent stake in a joint venture (JV), while the remainder will be owned by investors including Temasek, while EDIS will render project management services to the JV.
Then in July 2015, PDC signed an agreement with Temasek and EDIS for the construction of the 2.8ha BPO Prime, which will feature two towers with a height of 25 and 29 stories.
“BPO Prime will be part of the efforts by the state government to fulfil Penang’s destiny as one of the 31 BPO hubs of the future,” said the authorities back then.
According to investPenang general manager Loo Lee Lian, Temasek and EDIS are currently mulling BPO Prime’s design and feasibility amidst the current market condition. The original plans called for the residential units to be sold, whereas the commercial units would be rented out. They may have also commissioned property appraisers to look into the status of the real estate sector, particularly the residential segment in Penang and other parts of Malaysia.
Image sourced from Getty Images
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
