Penang Development Corporation (PDC) today inked a Memorandum of Understanding (MOU) with Temasek, and Economic Development Innovations Singapore Pte Ltd (EDIS). PDC and Temasek intend to form a joint-venture company to develop Penang International Technology Park (PITP) and Business Process Outsourcing Prime (BPO Prime).
While stakeholders and Temasek would own 49 percent of the joint-venture company, PDC would claim 51 percent, as EDIS would be tasked to provide project management services to the company. The gross development value for this project is estimated to be around RM11.3 billion. The MOU is subject, among other things, to the finalisation of definitive documents.
Located in Batu Kawan and in Bayan Baru respectively, PITP and BPO Prime have been identified by the Penang State Government as priority projects for Penang’s development. The PITP and BPO Prime with a size 206.8 acres will be completed over the next 5 to 10 years. BPO Prime will be part of the effort by the state government to fulfil Penang’s destiny as one of the 31 BPO hubs of the future.
“Penang has experienced two growth transformations – industrialisation and clustering in the past to become a successful industrialised economy and this development focusing on the services sector will help Penang’s economy move up the value-chain, by driving the third growth wave of knowledge intensive and innovation-led growth,” said Penang Chief Minister Lim Guan Eng in his statement today.
The project’s vision is to create new clusters of economic development with opportunities to live, work, learn and play in sustainable and innovative urban spaces, he said, adding that to achieve this vision, some of the strategies include economic development, high value manufacturing and innovation, and job creation in the state.
“This MOU demonstrates the success of PDC’s efforts to collaborate with foreign investors in attracting world-class international companies. Penang witnessed the completion and opening of the Penang Second Bridge on 1st March 2014. On that same day, Penang launched the RM3.3 billion BPO Hub in Batu Kawan and Bayan Baru, which is one of the main components in the MOU signing ceremony today. Over the next three years, Penang is expecting the realisation of a premium outlet, theme park and international golf resort, and the sprouting up of universities in the Education Hub and other business establishments as well as building of over 20,000 units of affordable housing. The new BPO is the beginning of the growth cycle on Penang,” said Lim.
Temasek is an investment company based in Singapore. Supported by 11 offices globally, it owns a S$215 billion portfolio as at 31 March 2013, with 71% of its underlying assets in Asia (including Singapore), and 25% in the mature economies of North America, Europe, Australia & New Zealand.
EDIS, is a privately-held company headquartered in Singapore with offices in Germany and the US, chaired by Mr. Philip Yeo, one of Singapore’s foremost economic architects. With expertise honed in conceiving and managing townships in India, Vietnam, China and Indonesia, EDIS’ core business is in the provision of strategic advisory services as well as developing integrated cities with a view towards economic development and job creation. -The Rocket
