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30 May 2025; Penang, Malaysia – Significant progress is underway for the landmark Silicon Island development, with approximately 150 acres (around 60 hectares) of land successfully reclaimed as of April 2025. This marks a key milestone since the project’s official commencement, signaling a tangible step towards realizing Penang’s vision as a leading high-tech hub in the Northern Corridor Economic Region (NCER).
Powering Penang’s Industrial Growth and Investment
Silicon Island, a strategic initiative by the Penang State Government in partnership with Gamuda Berhad (through Silicon Island Development Sdn Bhd), is a 2,300-acre (approximately 930 hectares) man-made island designed to address the critical need for industrial land and drive long-term economic growth in the region. The project is poised to make a substantial economic impact, with projections including:
- A Gross Domestic Product (GDP) contribution of RM1.1 trillion.
- Attracting total investments of RM74.7 billion.
- Creating approximately 220,000 job opportunities.
For investors, particularly those in the Electrical & Electronics (E&E), manufacturing, and high-technology sectors, Silicon Island presents a compelling proposition. It aims to expand upon the success of the Bayan Lepas Free Industrial Zone (FIZ), offering new, advanced facilities and infrastructure.
Key Features and Zones: A Hub for Innovation and Sustainable Living
Silicon Island is being developed in two phases, with the full reclamation expected to take 10 to 15 years. The masterplan showcases a multi-faceted development catering to various needs:
- Green Tech Park (GTP): Spanning approximately 700-720 acres, this will be the heart of the island’s industrial ambitions. It is designed as a high-technology industrial park focusing on research and development (R&D), digital technology, e-commerce, and Business Process Outsourcing (BPO). A key attraction for forward-thinking investors is its commitment to being powered by 100% renewable energy and adherence to Environmental, Social, and Governance (ESG) principles.
- Commercial Zone & Heart of the Island (HOTI): Envisioned as Penang’s new Central Business District, this zone will feature waterfront commercial spaces, retail outlets, dining, entertainment options, and educational institutions, creating a vibrant ecosystem.
- Residential Zone: Approximately 360-388 acres are allocated for diverse housing options, including affordable homes, condominiums, and landed properties, promoting a balanced live-work-play environment.
- Entertainment & Leisure Zone: This zone aims to be a world-class tourist destination with beaches, a waterfront esplanade, water sports facilities, and canals.
- Extensive Green Spaces: Reflecting its commitment to sustainability (evidenced by its 5-Diamond Low Carbon City accreditation), around 17.5% of the island (approximately 402 acres) will be dedicated to green parks, mangrove wetlands, and water features.
- Strategic Connectivity: Silicon Island will boast excellent connectivity, with proposed Light Rail Transit (LRT) stations and direct links to the Pan Island Link 2A (PIL2A) Highway. Its strategic location near the existing Bayan Lepas FIZ, Penang International Airport (PIA), and the Sultan Abdul Halim Muadzam Shah Bridge (Second Penang Bridge) further enhances its appeal for industrial and commercial activities.
Significance for Penang’s Industrial Landscape & Investors
The development of Silicon Island is a critical step in ensuring Penang remains a competitive destination for foreign investment and local industrial expansion. The project directly addresses the shortage of industrial land in Penang, providing much-needed space for both existing players looking to expand and new entrants, particularly in the booming E&E sector.
The focus on creating a “Green Tech Park” aligns with global trends towards sustainability and ESG-compliant investments, making it an attractive location for multinational corporations and high-value manufacturers. The integration of industrial, commercial, residential, and leisure components, coupled with smart city features and robust infrastructure, aims to create a self-sustaining ecosystem that will attract talent and foster innovation.
For foreign and local investors, Silicon Island offers:
- Access to Prime Industrial Land: Modern, ESG-compliant industrial lots within a high-tech park.
- Strategic Location: Proximity to key logistics hubs like the Penang port and airport, and the established Bayan Lepas FIZ.
- Supportive Ecosystem: Planned infrastructure including digital connectivity, potential for preferential tax incentives, and a talent pool from nearby educational institutions.
- Long-Term Growth Potential: As part of the Northern Corridor Economic Region’s development, Silicon Island is positioned for sustained growth and value appreciation.
Penangindustrial.com is closely monitoring the development of Silicon Island and will continue to provide updates on opportunities for industrial property and land investment in this transformative project. The reclamation of the first 150 acres is just the beginning of what promises to be a new chapter in Penang’s industrial success story.
Contact Us
Contact Ng Teng Huat (TH) at +6016-4787118 or tenghuat@interealtor.com for further information and assistance on your industrial real estate needs.
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