Chief minister Chow Kon Yeow said the earlier proposal was rejected on Nov 15 by the PDC tender board.

A request for proposal had been called for the Batu Kawan Industrial Park Phase 2 project, in Byram, following the cancellation of a direct deal after backlash against state land being sold for below market value.

Chow told the state assembly in a written reply today that the latest tender was rejected after it was found to have not complied with five out of nine essential criteria.

“The PDC will revise the terms and re-advertise the tender, with the updated terms to be presented at a future board meeting,” he said in a reply to Lim Guan Eng (PH-Air Putih), who asked for an update on the project.

The BKIP 2 project faced controversy in the past after the PDC sold the Byram land to Umech Land Sdn Bhd through a direct deal. The land was sold for RM20.50 per sq ft, far below market rates.

The deal was cancelled in October 2023 after Umech Land was taken over by property developer Sunway Group, which acquired a 70% stake in the company through its subsidiary, Sunway Bukit Gambier Sdn Bhd.

FMT was made to understand that when the land was retendered in February, the reserve price was set at up to RM38.60 per sq ft in line with market valuations.

The project involves the development of 226 hectares of land acquired by the state from private owners. Chow said the aim was to speed up industrial land development to keep Penang competitive as an investment destination.

BKIP 2 is one of four industrial parks under development. It is planned for completion by 2031. The other three are the Bandar Cassia Technology Park, Batu Kawan Industrial Park 3, and Penang Science Park South, with a combined development value of RM3.2 billion.