Penang to begin sale of Silicon Island industrial land in Q1 2027
Penang plans to start selling industrial plots on Silicon Island by the first quarter of 2027, with the first factory expected to operate in 2028. Chief Minister Chow Kon Yeow outlined the timeline while tabling the state's 2027 budget, focusing on the 700-acre Green Tech Park for semiconductors and
PETALING JAYA (Oct 30) — Penang aims to begin selling Silicon Island’s first industrial plots as early as the first quarter of 2027, with the reclaimed development’s first factory expected to begin operations in 2028, state publication Buletin Mutiara reported.
Chief Minister Chow Kon Yeow said development next year would focus on the 700-acre Green Tech Park, targeting investments in semiconductors, automated test equipment, integrated circuit design and medical devices. He outlined the plans when tabling Penang’s 2027 budget at the state legislative assembly on Friday (Oct 30).
The planned sales would bring new industrial land to market near Penang’s established Bayan Lepas manufacturing cluster. According to Silicon Island Development Sdn Bhd’s website, factory construction is scheduled to begin in 2027. The developer describes Green Tech Park as a 99-year leasehold industrial development, with advanced packaging and semiconductor capital equipment also among its targeted sectors.
The location is intended to attract manufacturers that can benefit from proximity to Penang International Airport. Silicon Island Development deputy project director Tan Jun Jing told Bloomberg in an Oct 8 report that businesses considering the development were likely to rely primarily on air freight for materials and finished products. Heavy manufacturers dependent on seaborne cargo would be better accommodated on the mainland, with easier access to the port, she said.
Buletin Mutiara reported that 500 acres had been reclaimed as of October, representing 39.4 per cent of Silicon Island’s 1,270-acre first phase. It also reported that a 64.85-acre site had been prepared in May for the Mutiara Line light rail transit depot.
Road access is being developed alongside the industrial offering. In an Oct 17 update reported by Bernama, Silicon Island Development chairman Datuk Seri Farizan Darus said the first section of the marine bridge connecting Jalan Permatang Damar Laut directly to Silicon Island was targeted to open by December 2028. Farizan, who is also Penang Infrastructure Corporation Sdn Bhd chief executive officer, said the RM420 million Pan Island Link 2A contract was progressing towards full completion by June 2029.
Reclamation works began in September 2023. The industrial park’s planned infrastructure includes renewable-energy supply, high-speed digital connectivity and a dual-purpose sewage treatment plant, according to the developer’s website. Its published plans target electricity supply entirely from renewable sources. Chow said Silicon Island had already generated business for local contractors and traders, with 4,531 contracts worth RM1.92 billion awarded as at Sept 30, Buletin Mutiara reported.
