Which Are the Most Established Industrial Zones in Penang?

Penang: Malaysia’s Global Manufacturing Hub

Penang is often referred to as the Silicon Valley of the East, thanks to its strong electronics and semiconductor ecosystem, world-class infrastructure, and investor-friendly environment. The state has played a critical role in driving Malaysia’s export growth, especially in high-value industries such as electronics, medical devices, and precision engineering.

Several industrial zones in Penang are globally recognized and have consistently attracted multinational corporations (MNCs) and local companies for decades. Below, we explore Penang’s most established industrial zones.

1. Bayan Lepas Free Industrial Zone (FIZ)

Known as the crown jewel of Penang’s industrial success, the Bayan Lepas Free Industrial Zone is one of the oldest and most prestigious industrial parks in Malaysia. Established in the 1970s, it is home to many multinational giants in the electronics and semiconductor sectors.

Key Features:

• Hosts global companies like Intel, Dell, Motorola, and AMD

• World-class infrastructure supporting high-tech industries

• Close proximity to Penang International Airport

• Major hub for electronics, medical devices, and precision engineering

This zone has firmly established Penang as a global player in the electronics and E&E sector.

2. Batu Kawan Industrial Park (BKIP)

Batu Kawan Industrial Park is Penang’s modern, fast-growing industrial zone, strategically located on the mainland near the Second Penang Bridge. It is now one of Malaysia’s most attractive investment destinations.

Key Features:

• Hosts major MNCs like IKEA, Bosch, Dexcom, and Lam Research

• Focus on high-value, clean, and advanced industries

• Integrated with commercial, residential, and green developments

• Excellent highway and port connectivity

BKIP represents the next generation of industrial parks with sustainable, mixed-use planning.

3. Penang Science Park

Located near BKIP, Penang Science Park is a modern, well-planned industrial park catering to companies in:

• Electronics and semiconductors

• Research and development

• Biotechnology and clean industries

Key Features:

• Strategically connected to both bridges and major highways

• Green landscapes and modern industrial facilities

• Targeted at high-tech and knowledge-based industries

Penang Science Park complements BKIP as a key industrial growth corridor.

4. Prai Industrial Estate

The Prai Industrial Estate on the mainland is one of Penang’s earliest industrial developments and remains an active manufacturing and logistics hub.

Key Features:

• Proximity to North Butterworth Container Terminal (NBCT) and Penang Port

• Supports heavy industries, logistics, and consumer goods manufacturing

• Strong transport and port access for export-oriented businesses

Prai Industrial Estate offers large plots and easy access to sea freight, making it ideal for export-heavy industries.

5. Seberang Perai Industrial Areas

Seberang Perai hosts several smaller, but well-established, industrial areas catering to:

• Automotive parts

• Packaging

• Food processing

These areas benefit from Penang’s robust infrastructure and are typically home to SMEs supporting larger manufacturing operations within the state.

Conclusion: Penang’s Industrial Ecosystem Continues to Lead

Penang’s industrial zones—Bayan Lepas Free Industrial Zone, Batu Kawan Industrial Park, Penang Science Park, Prai Industrial Estate, and Seberang Perai Industrial Areas—form a diverse and highly developed industrial landscape.

With world-class infrastructure, proximity to ports and airports, and a mature electronics supply chain, Penang continues to be one of Malaysia’s most competitive industrial hubs, attracting high-tech investments and driving export growth.

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