INDUSTRIAL PARK GUIDE · BATU KAWAN · 2026

Batu Kawan Industrial Park (BKIP): Factories, Land & Rental Rates

Who operates in BKIP, what factories rent for, how PDC leasehold works, and what BKIP 3 means for buyers and tenants in 2026.

PDC

Park Developer

S. Perai Selatan

Location

RM 8K+

Semi-D Rent / Month

019‑4499725

YC Tang Direct Line

Batu Kawan Industrial Park BKIP Penang aerial view of factories near the Second Penang Bridge
Batu Kawan Industrial Park sits at the mainland end of the Second Penang Bridge in Seberang Perai Selatan.

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.

ItemDetails
DeveloperPenang Development Corporation (PDC)
LocationBatu Kawan, Seberang Perai Selatan, Penang Mainland
Land tenurePDC leasehold (state land allocated to investors)
Main industriesSemiconductors, E&E, medical devices, automation, automotive
Typical factoriesLarge detached plants, semi-D factories, some terrace units
Newest phaseBKIP 3 — leased (not sold) for up to 60 years

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.

🌉 Second Penang Bridge

Direct link to Batu Maung and Bayan Lepas on the island — the main reason MNCs pair island HQs with BKIP plants.

🛣️ North-South Expressway

Connected via Lebuhraya Bandar Cassia to the PLUS highway for Kulim, Ipoh and the KL corridor.

🚢 Port & Airport

Penang Port (Butterworth) is reached by highway; Penang International Airport is across the bridge.

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:

Semiconductor & E&E

Micron Technology, Lam Research, Western Digital, ViTrox Corporation, Greatech Technology, EPAK

Medical Devices

Boston Scientific, DexCom

Consumer & Automotive

Bose Corporation, Honda Malaysia

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.

📌 What this means for you: BKIP 3 plots suit large investors who want to build their own plant. If you need space within months rather than years, an existing BKIP factory — for rent or subsale — is usually the faster route.

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:

Factory TypeTypical Built-Up (sq ft)Monthly Rental (RM)
Semi-D Factory5,000 – 12,000RM 8,000 – 18,000
Detached Factory10,000 – 50,000+RM 18,000 – 65,000+

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.

⚡ Check the power

Many BKIP tenants need 1,000 A or more. Confirm the existing supply before you sign — upgrading takes time.

📏 Check the height

Automation and racking often need high clear height. Older semi-Ds may fall short.

📝 Check the lease

Tenancies above 3 years need a lease registered at the land office. Plan the term with renewal options.

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.

📌 PDC Consent Fee: For leasehold industrial land under PDC, a separate consent fee is payable by the buyer on top of the agreed price. Learn more at PDC's official site →

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

Is BKIP Right for Your Business?

If you are…Consider
An MNC or supplier serving MNCs in BKIPBKIP — be close to your customers
An SME in light manufacturing or assemblyBukit Minyak — wider choice, lower rent
Shipping containers through Penang PortPrai Industrial Estate — minutes from the port
Needing duty-free imports for exportAny zone + an LMW licence
Wanting freehold titleA Park @ Batu Kawan East or other private parks

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

❓ Frequently Asked Questions — Batu Kawan Industrial Park

Where is Batu Kawan Industrial Park?

BKIP is in Batu Kawan, Seberang Perai Selatan, on Penang Mainland, at the mainland end of the Second Penang Bridge. It connects to the North-South Expressway via Lebuhraya Bandar Cassia.

Who developed Batu Kawan Industrial Park?

BKIP was developed by the Penang Development Corporation (PDC), the state agency that also developed Bayan Lepas, Prai and Bukit Minyak industrial parks.

Is Batu Kawan Industrial Park freehold or leasehold?

Most land in BKIP is PDC leasehold. BKIP 3 land is leased by PDC for up to 60 years. Freehold industrial land is available in some private parks nearby, such as A Park @ Batu Kawan East.

How much is factory rental in Batu Kawan?

Based on our 2026 benchmarks, semi-D factories in BKIP rent for about RM 8,000–18,000 a month and detached factories from about RM 18,000 to RM 65,000+, depending on size, power and specification.

What is BKIP 3?

BKIP 3 is the newest phase of Batu Kawan Industrial Park, about 251 hectares, developed by PDC. Land is leased rather than sold, with Phase 1A scheduled from October 2025 and full completion targeted for 2031.

Which companies are in Batu Kawan Industrial Park?

Companies with operations in BKIP include Micron Technology, Lam Research, Western Digital, Boston Scientific, DexCom, ViTrox, Greatech, Bose, Honda Malaysia and EPAK.

Can I buy land in Batu Kawan Industrial Park?

You can buy an existing leasehold factory or lot through a subsale, subject to PDC consent and a consent fee, or apply to lease BKIP 3 land from PDC. Contact YC Tang for current subsale options.

🏷️ Batu Kawan Factories For Sale

Batu Kawan Detached Factory For Sale | Vacant |1 Acre | RM16M

Interior of a large empty warehouse with a high metal-truss ceiling, gray walls, red piping along the walls, and a wide doorway revealing outdoor equipment and greenery. For Sale
MYR16,000,000 Detached Factory

Batu Kawan detached factory for sale — vacant 1 acre…

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44146 Sq.ft

Limited 2 storey Batu Kawan Semi D Factory For Sale

For Sale
MYR6,300,000 Semi Detached Factory

Batu Kawan Semi D Factory For Sale RM 6.3 Mil…

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14000 Sq.ft

Batu Kawan Detached Factory 1 Acre For Sale

Batu Kawan Detached Factory 1 Acre For Sale With Tenancy – production floor view from front towards back For Sale
MYR16,800,000 Detached Factory

Batu Kawan detached factory for sale at Batu Kawan Industrial…

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44000 Sq.ft

🏭 Batu Kawan Factories For Rent

Batu Kawan Detached Factory For Rent | 500 AMP|14m Ceiling

Interior of a large empty warehouse with high metal truss ceiling and concrete floor, red piping along walls, and a wide open doorway to outdoors at the far end. For Rent
MYR88,522 Detached Factory

Quick Overview Property Type: Detached Factory Location: Batu Kawan Industrial…

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44146 Sq.ft

Terrace Factory For Rent Batu Kawan BKIP | 100 AMP

Empty industrial space with white walls, red pipes along the walls, a closed metal roll-up door, and an open doorway to the right; logo in the upper right corner. For Rent
MYR6,500 Terrace Factory

Terrace Factory For Rent at Batu Kawan  |  2,575 sq.ft…

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2575 Sq.ft

Best Detached Factory For Rent Batu Kawan Industrial Park | Rare 2.24 Acre | 2400 AMP

detached factory for rent Batu Kawan Industrial Park – exterior view of 3-level BKIP factory For Rent
MYR530,247 Detached Factory

Exterior view of the 3-level detached factory for rent at…

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97574.40 Sq.ft

Looking for a Factory in Batu Kawan?

Tell us your built-up, power and budget. YC Tang will shortlist BKIP factories for rent or sale — plus alternatives in Bukit Minyak and Prai if BKIP is not the right fit.

Owners & Landlords: Own a factory in BKIP or Batu Kawan? Demand from MNC suppliers is strong. List with us to reach qualified tenants and buyers.

Registered Real Estate Negotiator · REN 12101 YC Tang · Focusing On Penang Industrial Properties

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