Yet another DAP Penang project to develop Penang has run into trouble.
Yesterday, The Edge reported that the Business Processing Outsourcing Prime (BPO Prime) and Penang International Technology Park (PITP) projects worth a combined RM11.3 billion, which involve the Penang Development Corp (PDC) and Singapore’s Temasek Holdings Private Ltd, have been deferred due to current property market conditions.
The BPO Prime project with a gross development value (GDV) of RM1.3 billion in Bayan Baru, Penang was to be completed in 2019.
However, it has been postponed indefinitely, inadvertently pushing back the commencement of the PITP project, slated to begin after the BPO Prime project.
In Oct 2014, Lim Guan Eng created much fanfare in announcing their joint-venture with Singapore's Temasek to develop Penang into an international outsouring hub to provide "high value knowledge-based" jobs and develop Penang.
“BPO Prime is a priority project that is part of the state government’s plans to transform Penang into an international outsourcing hub. It will strengthen our infrastructure and support the rapidly growing BPO industry here." said LGE then.
Today, the project has been put on-hold indefinitely citing soft property market and reduced demand for their "high quality condominium", which is strange since it is supposed to be a business outsourcing hub and not a condo project.
This adds to the long-list of projects that has been canceled or much-delayed - Penang Tunnel, Taman Manggis medical center, Eco Marina among others - that was supposed to transform and develop Penang and its economy.
It is no wonder that states like Johor, Malacca and even Negeri Sembilan has over-taken Penang in Median Household Income or Average Salary and why GDP per Capita growth in Penang is last placed (according to Gerakan) or 4th lowest place (according to LGE) GDP per Capita growth among all 14 states since 2008
Sheer incompetence from DAP Penang while annual state operating expenditure has now increased 500% since 2008 funded by DAP Penang Govt selling off all available state land and assets - a very unsustainable short-term strategy.