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Creating the Silicon Valley of the East 2.0 on Penang's mainland

KUALA LUMPUR (Nov 6): Penang is often dubbed the Silicon Valley of the East, thanks to its strong and vibrant electrical and electronics (E&E) ecosystem.

It began in the 1970s when The Eight Samurai — Intel, Robert Bosch, Clarion, Advanced Micro Devices (AMD), Hewlett-Packard (HP) (now Keysight Technologies and Agilent Technologies), Litronix (now Osram Opto Semiconductors), Hitachi (now Renesas Electronics) and National Semiconductor — established their operations in Penang.

As the E&E sector continues to grow with the adoption of new, innovative and advanced technology, the multinational corporations (MNCs) have created opportunities for other mid- and downstream players, as well as local companies that provide supporting activities.

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That explains why Malaysian semiconductor-related players are particularly strong in the area of outsourced semiconductor assembly and test (OSAT) and automated test equipment (ATE), as their founders and CEOs were trained by the MNCs in Penang.

Over the years, Penang, or more specifically Bayan Lepas, has evolved into a regional electronics manufacturing hub.

However, the narrative may be changing, as Batu Kawan has emerged in recent years as a strong E&E cluster. Not only is the Batu Kawan Industrial Park (BKIP) expected to replicate the success story of Bayan Lepas, it may even outshine its 50-year-old counterpart.

Located off Seberang Perai on the mainland of Penang, Batu Kawan is intended to be the state’s third satellite town after Bayan Baru and Seberang Jaya. But does it have what it takes to become the Silicon Valley of the East 2.0?

There is no better person to ask than Invest-in-Penang Bhd CEO Datuk Loo Lee Lian, who has been promoting investments in the state since 2010.

The Edge also spoke to a few prominent business executives and captains of industry, including Micron Technology Inc president and CEO Sanjay Mehrotra and Lam Research International Sdn Bhd general manager Soon K Kuek, to get their views on investments in BKIP.

AND THIS

Greatech Technology Bhd, Pentamaster Corp Bhd and UWC Bhd announced they are collectively taking up 14 hectares of land valued at RM520 million in the Batu Kawan Industrial Park in a press conference with the Penang State government on Friday. The projects are expected to commence in the first quarter of 2022 and will create up to 1,300 jobs for the locals when completed and fully functional.

OK FROM THE ABOVE WE SEE THAT PENTA & GREATEC HAVE BOUGHT LANDS IN BATU KAWAN

Let us go and see the cost of purchase

Refer to Penta Announcement in Bursa

The Board of Directors of Pentamaster Corporation Berhad ("PCB" or “the Company”) is pleased to announce that Pentamaster Equipment Manufacturing Sdn Bhd ("PEMSB” or the "Purchaser"), a wholly-owned subsidiary of Pentamaster International Limited (“PIL”), which in turn is a subsidiary of PCB in which PCB holds 63.46% equity interest, has on 3 November 2021 entered into a sale and purchase agreement (“SPA”) with the Penang Development Corporation ("PDC” or the "Vendor") for the proposed acquisition of a piece of leasehold land as detailed in Paragraph 3.1 (“the Land”) for a total cash consideration of Ringgit Malaysia Twenty Eight Million Two Hundred Seventy Nine Thousand Three Hundred and Four and Sen Thirty Five (RM28,279,304.35) (the “Purchase Price”) (hereinafter referred to as “the Proposed Acquisition”).

PURCHASE PRICE IS RM28,279,304.35

LAND IS LEASEHOLD AND SIZE 11.8037 ACRES

TO GET PRICE OF ONE ACRE

See how much Greatec paid

The Board of Directors of the Company (“Board”) wishes to announce that Greatech Integration (M) Sdn Bhd (“GIM”) had on 3 November 2021 entered into a Sale and Purchase Agreement (“SPA”) with the Penang Development Corporation (“Vendor”) for the acquisition of a piece of leasehold land held under Plot 1(c) of Batu Kawan Industrial Park with land area measuring approximately 11.5754 acres (about 4.6844 hectares) (“Land”), which forms part of the land held under Hakmilik Sementara No. H.S.(D) 40377, PT 4083, Mukim 13, Daerah Seberang Perai Selatan, Negeri Pulau Pinang with an area of approximately 48.8288 acres (about 19.7603 hectares) (“Master Land”) for a total purchase consideration of RM27,732,343.10 (“Purchase Consideration”) to be satisfied in cash, on an “as is where is basis”, free from all encumbrances and with legal possession but subject to the category of land use, the express conditions and the restrictions in interest endorsed on the document of title to the Land (upon issuance) or as imposed by the Relevant Authorities, and all other conditions and restrictions implied by the National Land Code, 1965 (“NLC”) and upon the terms and conditions of the SPA (“Acquisition of Land”).

PURCHASE PRICE IS  RM27,732,343.10

The Land is all that plot of land known as Plot 1(c) measuring approximately 11.5754 acres (about 4.6844 hectares) which forms part of the Master Land. There are buildings constructed on the Land including a building which is located on the border of the Land and the adjoining land known as Plot 1(d) (“Buildings”).

LAND IS 11.5754 ACRES

COST PER ACRE

RM27,732,343.10 DIVIDES BY 11.5754

= RM2,395,799.98

ABOUT RM2.395,799.98  MILLIONS AN ACRE

SO FROM THESE FIGURES WE GET THE SAME PRICE BOTH PENTA & GREATEC ARE PAYING FOR LEASEHOLD LANDS IN BATU KAWAN

NOW WE SHALL SEE BPLANT ASSETS NEAR BATU KAWAN

PLEASE REFER TO BURSA WEBSITE LOOK FOR BOUSTEAD PLANTATION

SCROLL DOWN TO PROPERTIES OWNED BY BPLANT

UNDER TASEK GELUGOR

Malakoff Estate, Tasek Glugor,

 RM2.395,799.98 DIVIDES BY RM45,989.75

= 52.09 (X) Times More

OR JUST 1.9% OF THEIR CURRENT MARKET VALUE

BPLANT HAS A 100 YEAR HISTORY FROM THE DAYS OF BOUSTEAD. SO BPLANT ASSETS ARE REAL GOLD MINES SITTING ON ANCIENT BOOK VALUE

BATU KAWAN WILL SEE ANOTHER INCREASE OF 1,300 JOBS FROM NEW E&E FOCTORIES

SO DEMAND FOR HOUSES WILL RISE. TASEK GELUGOR LANDS OF BPLANT WILL ALSO RISE IN TANDEM

SEE DISTANCE

What is the currect Value of Tasek Gelugor Lands ?

For that we can refer to Scientex's early purchase this year

Scientex acquires land in Penang to build more affordable homes

Its chief executive officer Lim Peng Jin said the first phase of Scientex Tasek Gelugor, launched in October 2020 has recorded a take-up rate of more than 90 per cent to date.

Houses in Tasek Gelugor has sold like hot cakes - more than 90% sold

The packaging manufacturer and property developer is expanding its current landbank in Penang to 523 acres where it is acquiring three parcels of freehold agriculture land measuring a total of 343 acres in North Seberang Perai.

The company's wholly-owned subsidiaries Scientex Quatari Sdn Bhd and Scientex (Skudai) Sdn Bhd have entered into two separate sales and purchase agreements with Sunrich Conquest Sdn Bhd and Titanium Greenview Sdn Bhd respectively to acquire the land parcels for RM246.7 million.

So Scientex is buying 343 Acres of lands for Rm246.7 Millions

To get Cost per acre

Divides Rm246.7 Millions by 343 acres

= RM719,241 per acre

Above was done in April 2021 (7 months ago) before they call BATU KAWAN Penang Silicon 2

By now land prices should appreciate further

If we take same value of Rm719,241 per acre

The Updated value of BPLANT lands will be

1,389 x Rm719,241

= RM999 MILLIONS (Almost worth 1 Billion Ringgit)

That is over 40 sen Net Cash just from this piece (Bplant has Clusters of Prime Lands all over Malaysia

Penang, Kedah Clusters alone has a total of 8 Estates

Imagine how grossly undervalue is Bplant. Only Thplant lands could match Bplant as Thplant got over 240,000 acres of Plantation lands book value as low as Rm4,000 an acre

Since BPlant has designated 60% cash profit as dividend we can expect Good Dividend Years to return

Warm regards

Calvin Tan

Please buy or sell after doing your own due diligence or consult competent Remisier/Fund Manager