It’s not such an awesome news for Penang’s property market. Reported in South China Morning Post (SCMP). Full article here. RM11.3 billion worth of project involving the Penang Development Corp (PDC) and Singapore’s Temasek Holdings Private Ltd, have been deferred due to current property market conditions. They are the Business Processing Outsourcing Prime (BPO Prime) and Penang International Technology Park (PITP). It was supposed to have been completed in 2019. The projects are postponed indefinitely. The MOU was signed on May 23, 2014. At the time, the Penang state government announced that the PITP and BPO Prime will be completed over the next five to 10 years. It was an ambitious plan to propel Penang into one of the 31 BPO hubs of the future.
In an interview with The Edge Financial Daily, according to investPenang general manager Loo Lee Lian, there is no time frame for the construction of BPO Prime. A review of the design is in progress due to the current market condition. She shared, “I think they have asked valuers to look at the property market again, especially the residential segment in Penang and [other parts of] Malaysia.” She added, “Penang remains a very attractive site for BPO and investors want to go to a second-tier city (first-tier being Cyberjaya and Kuala Lumpur) because it is cheaper and smaller-sized.” It was the first collaboration between Temasek and PDC. Based on an estimate by Global tech researcher Technavio-Infiniti Research Ltd, the global market share for shared services will grow at a compound annual growth rate of more than 14 per cent by 2020.
The piece of land that the project would be built on is considered a prime one. In fact, it’s right smack in the middle of Bayan Baru and Bayan Lepas. Without jams, it is only 10 minutes to reach the Penang International airport and to the second bridge as well as the first bridge. Thus, this deferment should hopefully be temporary. I am very sure there are many other options to consider should this joint-venture really does not take off as per plan. Let’s see what would be announced by investPenang in their next communication. As for choices to invest, there are many other mainland new developments too, not necessarily only within the island itself. Happy following.
written on 23 Jan 2017
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