Strong Demand for First Phase of Ideal Capital’s PTP project

Ideal Capital Bhd has signed sales and purchase agreements with 23 local and foreign companies to occupy about 35% of Penang Technology Park (PTP) first phase in Bertam.

Based on the current market price of RM65 and RM90 per sq ft for industrial properties in North Seberang Prai, the sales generated about RM500mil or 12% of PTP’s gross development value (GDV).

Dubbed the “Penang Industrial King” by the property sector, Group executive chairman Tan Sri Ooi Kee Liang told StarBiz that some 20 other companies would sign sales and purchase agreements with the group over the next two months.

“When these companies signed, PTP’s occupancy would reach over 40%.

“They are now waiting for approval of their loan facilities.

“The signed investors hail from countries such as China, Germany, and Japan and will bring to PTP cutting-edge technology, expertise, and knowledge.

“They are involved in electronics assembly, component manufacturing, metal fabrication, medical devices, trading, warehouse and logistic business.

“They would build light and medium industrial factories on the properties they purchased,” he said.

Ideal Capital will explore more vacant land in Seberang Prai to launch more industrial park projects.

Ooi said according to 27Group, a business consultancy firm, the Malaysian economy needs to leverage the most promising growth areas within the economy to sustain economic expansion in the coming year and buffer against potential
recessionary forces.

“The industrial property market of the Malaysian manufacturing sector holds potential for spearheading economic growth.

“The local industry sector is expected to grow by 3.9% this year, according to the Updates on Economic Outlook and Revenue Estimates 2023 Report,” he said.

Industrial property sales in Malaysia achieved a total of RM 5.9 billion in December of 2022, and the market continues to experience significant growth as demand for more advanced industrial facilities continues to rise.

“The demand for industrial properties emanates from multi-national corporations relocating from China to the Asean region.

“The growing e-commerce sector also seeks industrial parks with modern logistic and warehousing facilities.

“Then there’s also the environmental, social, and corporate governance (ESG) compliance need that is driving companies to look for industrial properties equipped with the appropriate smart and environmental-friendly infrastructure.

“The mid-tier and advanced wafer-fabrication manufacturers are expanding their operations worldwide, so there is a need for Malaysia to develop new and smart industrial parks to attract such investments.

“Due to the country’s lack of expertise in advanced wafer manufacturing, Malaysia can always position itself to attract the mid-tier players,” he said.

According to Ooi, the group’s plans would focus on developing industrial parks with industry 4.0 practices and intelligent factories to help companies optimise operational workflows, reduce costs, and mitigate lockdown risks.

“We are looking into integrating novel technologies such as artificial intelligence, robotics and machine vision to enhance their industrial operations and improve production efficiencies.

“We will also explore adopting the Built-to-Suit (BTS) approach, in which the properties and facilities are customised according to the specific needs of the tenants or buyers,” he said.

The PTP has an RM4.2 billion gross development value that will be realised over the next four years, according to Ooi.

“We are spending RM150 per sq ft to develop the infrastructure for our industrial park,” Ooi said.

According to the Malaysian Investment Development Authority, in 2022, Penang roped in RM13.7 billion in approved manufacturing investments, while the country attracted RM264.6 billion in approved investments.

The state received RM9.7 billion (71%) in foreign direct investment and RM4 billion (29%) in domestic direct investment for manufacturing in 2022.

“The investments involved 135 projects and are expected to generate 15,752 new job opportunities in the state.

“These investments will fuel the demand for industrial properties and technology parks.

“We can, therefore, expect the industrial sector in the country, especially Penang, to grow moderately even when the global economy experiences a slowdown,” Ooi said.

Meanwhile, the group has recommended an interim single tier dividend of 1 sen per share for the financial year ending 31 December 2023.

The entitlement and payment dates of the dividend will be announced at a later date.

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