THE arrival of Swedish furniture brand Ikea in Penang has resulted in more land-buying in Batu Kawan, an area once deemed unattractive.

Now, there is little industrial land left in Batu Kawan, said Chief Minister Chow Kon Yeow.

Since the 1990s, state investment arm Penang Development Corporation (PDC) has been working on developing a new township there. 

Other than the Batu Kawan Stadium and some housing projects, few investors were interested in setting up shop there, until some five to six years ago when Ikea and local developer Aspen Group made plans to open the brand’s first store in the northern region.

Chow said the RM650 million outlet is the catalyst that brings other investors to the area that was nothing but undergrowth, infested with mosquitoes.

“Five to six years ago, there was no second Penang Bridge linking Batu Kawan to the island. There were many mosquitoes and cows. Ikea bosses had to come to Batu Kawan by helicopter.

“After Ikea and Aspen bought over 200 acres of land in Batu Kawan, we started to bring in other investors.

“We had 1,500 acres of industrial land and now we are left with little. There is still land for housing and commercial projects,” he said at the store’s opening today.

The 470,146 sq ft store in Persiaran Cassia Selatan 8 is Ikea’s fourth in Malaysia, after Kota Damasara, Cheras and Tebrau in Johor.

It is now a landmark in Batu Kawan, which is also home to Boston Scientific, HP, Broadcom, Western Digital, ViTrox, Inari, Pentamaster and the newly announced Micron.

Chow said Batu Kawan is on its way to becoming a full-fledged township in five to 10 years.

He added PDC will continue to work on affordable housing projects.

There are also two universities opening in Batu Kawan – Australia’s University of Wollongong and UK’s Plymouth University, he said.

Meanwhile, the state is considering proposals for two new hospitals there.

“If things go well, we will also have specialist hospitals in Batu Kawan,” he said.

The Ikea store in Penang was mooted when Finance Minister Lim Guan Eng was chief minister. He was also present at the opening this morning.

Lim said the development was an example of a 4P (public, private, people and professional) partnership.

“I hope our success in Batu Kawan can be replicated elsewhere in Malaysia so we can raise the quality and quantum of our economic growth that can be enjoyed by all Malaysians.” 

Lim also praised IKEA for its sustainability values, installing solar panels, rainwater capture systems and energy recovery equipment among others that will help manage water and energy consumption, and reduce waste. – March 14, 2019