Batu Kawan Industrial Park (BKIP) is Penang Mainland's flagship high-tech industrial park. Developed by the Penang Development Corporation (PDC), it is home to global names in semiconductors, medical devices and electronics — and it is where many MNCs now choose to build rather than on the island.

This guide is written for manufacturers, SMEs and investors who are actually looking for space. It covers who is already in BKIP, what factories rent for, how buying works on PDC leasehold land, and what the new BKIP 3 phase changes. If you only need current units, go straight to Batu Kawan factory for rent.

What Is Batu Kawan Industrial Park?

BKIP is an industrial park in Batu Kawan, Seberang Perai Selatan, planned and developed by PDC — the state agency behind most of Penang's industrial parks. It was built to take the next wave of high-value manufacturing after Bayan Lepas on the island ran short of land.

Unlike older mainland estates such as Prai or Mak Mandin, BKIP was master-planned for large-format, MNC-grade plants: big land parcels, wide internal roads and utility capacity sized for heavy power users.

Location & Connectivity

BKIP sits at the mainland landing of the Sultan Abdul Halim Muadzam Shah Bridge (the Second Penang Bridge). That single fact drives most of its value: staff and suppliers from Bayan Lepas and the island can reach BKIP without going through Butterworth traffic.

Around the park, the Batu Kawan township has grown quickly — Aspen Vision City, IKEA and Design Village are nearby — which makes it easier to hire and keep staff than in more remote estates.

Who Operates in BKIP?

BKIP's tenant list is its strongest selling point. Companies with operations in the park include:

For a supplier, this cluster is the point: being a short drive from your customer's plant shortens lead times and makes audits easier. It is also why well-specified factories in BKIP rarely stay vacant for long. Read more on how MNCs choose a site in our guide to setting up a factory in Penang.

BKIP 3: The New Phase

Batu Kawan Industrial Park 3 (BKIP 3) is PDC's newest extension of the park. Key points announced by PDC and reported in 2024:

• Size: about 251 hectares (roughly 620 acres) gross, part of a RM3.2 billion PDC programme covering three new parks.
• Lease, not sale: PDC will lease BKIP 3 land to investors for a maximum of 60 years instead of selling it.
• Timeline: Phase 1A (about 60 acres) was scheduled for October 2025, with full completion targeted for 2031.
• Target industries: E&E, medical devices, machinery and equipment, and engineering and automation.
• Support facilities: planned workers' housing, a logistics hub and green-energy infrastructure.

Source: Business Today, MIDA.

BKIP Factory Types & Rental Rates

BKIP commands the highest industrial rents on Penang Mainland. You pay for the address, newer buildings and higher power capacity. Our 2026 benchmarks:

Actual rent depends on power supply (amps), ceiling height, crane and loading provisions, and building age. Compare BKIP with other zones in our Penang factory rental price guide, or see units available for rent in Batu Kawan now.

Buying a Factory or Land in BKIP

Most BKIP land is PDC leasehold. That affects how you buy:

• Subsale of an existing factory: the most common route. Transfers need PDC consent, and a PDC consent fee is payable on top of the purchase price.
• BKIP 3 plots: leased directly from PDC for up to 60 years — suited to investors building their own plant.
• Freehold alternatives nearby: private parks in the Batu Kawan area, such as A Park @ Batu Kawan East, offer freehold titles for buyers who want to avoid PDC leasehold.

For the full cost breakdown and buying steps, read our Batu Kawan industrial property buying guide.

Is BKIP Right for Your Business?

Not sure which fits? Tell us your power, size and budget, and we will shortlist factories across all zones.