Kulim Hi-Tech Park (KHTP) is Malaysia’s first fully integrated high-technology industrial park. KHTP is developed and managed by Kulim Technology Park Corporation (KTPC). At its core, the industrial park consists of zoned estates built to be conducive for industrial development, with excellent road connectivity and an expressway known as the Butterworth-Kulim Expressway that connects KHTP to the nearest Northern Butterworth Container Terminal of Penang Seaport (26 kilometers from KHTP) and Penang International Airport (44 kilometers from KHTP). The facility offers an advantageous industrial park framework and location where manufacturing businesses can grow rapidly, equipped with a closed-circuit TV command center for added security. Read on to learn more about how KHTP can help expand your manufacturing business.
KHTP has become one of Asia’s major new investment locations for global companies, with facilities able to handle the needs of a wide range of industries. These industries span various fields such as wafer fabrication, semiconductors, medical devices, optoelectronics and aerospace, including new and emerging technologies. To date, 39 multinational corporations have set up operations in KHTP, where Japan contributes to the second-highest total number of investors by country in KHTP.
As Malaysia’s premier integrated high-technology industrial park, in 2021 KHTP had a banner year with an inflow of investments received valued at 65.6 billion ringgit ($14.6 billion), which contributed to 99.1% of total investments received by Kedah state. This has made Kedah the second-highest state-level contributor for Malaysia’s total approved investments in the manufacturing sector for 2021 (source: Malaysian Investment Development Authority, March 2022). For the first quarter of 2022, KHTP contributed 99.8% of total approved investments in the manufacturing sector to the state of Kedah, making Kedah the top state contributor for Malaysia (source: MIDA, June 2022).
In KHTP, the industrial park is seen as a valuable economic asset as manufacturing locators benefit from a wide array of infrastructure and amenities. The six zones in KHTP are dedicated zones for industrial; institutional; residential; amenity; research and development and training; and urban. Presently, there are four phases in KHTP’s Industrial Zone, which form 46% of the overall 4,736 acres (1,917 hectares), and KHTP is progressively expanding its Industrial Zone to meet investors’ demands. The Institutional Zone consists of KHTP Police Station, KHTP Fire Station (equipped with a hazmat facility) and the Kulim District Hospital. The Residential Zone provides excellent housing infrastructure that is already well-established within the park, with nearly 5,000 housing units developed, offering convenience and leisure opportunities for residents. Also, in construction progress is the centralized labor quarters (CLQs) being built according to Responsible Business Alliance standards. The CLQs project aims at providing accommodation for approximately 11,500 workers.
The Amenity Zone is where the KHTP Sports Complex, KHTP Eco Park (a recreational park) and the established Kulim Golf & Country Resort – an 18-hole international championship golf course at the heart of KHTP – are situated, making KHTP the ideal location for providing recreational activities and work-life balance for the community. The R&D and Training Zone houses the higher-learning institutions. This enhances the industry-academia collaboration between industries and the education sector. Convenience is at the forefront of working in KHTP as banks, office spaces, eateries and commercial outlets are nearby.
To assist investors in setting up their manufacturing businesses smoothly in KHTP, our Project Management Consultancy is composed of appointed consultants, architects, engineers and contractors, with KTPC as the focal point in overseeing the construction of the manufacturing facility until its completion. Thus, it becomes clear why KHTP is highly sought by investors for its well-connected, business-friendly environment.
Looking to the future
For small and medium enterprises, the KHTP SME Park offers a seamless “plug and play” facility for the supply chains to multinational companies. By lowering costs and cutting down on turnaround time, KHTP’s infrastructure will allow SMEs to grow and expand their businesses.
To ensure tenants’ safety and security, KHTP SME Park will be gated and guarded, with 24/7 closed-circuit TV surveillance. The SME Park Business Centre will provide ample space for a cafeteria, meeting rooms, management offices, conference rooms and event spaces for tenants to display their products and conduct meetings with clients.
KHTP SME Park encompasses 14 factory lots with three types of building models available for rent: detached, semidetached and warehouses. The warehouses will be built based on a customized build-to-suit model according to the investors’ building specifications. Several Japanese investors have already shown interest in the offerings, with two Japan-based companies opting to select the park as a suitable location for making their first footprint outside of Japan.
KHTP continues to grow
KHTP is constantly expanding and developing land to meet the needs of investors. An approved expansion project within KHTP is expected to kick off around the end of 2022, and will increase the industrial zone to encompass an area of almost 700 acres (283 hectares). This will be available to investors on a progressive completion basis, and investors will be able to start constructing their facilities by the end of 2023. Therefore, these new facilities will be completed in concurrence with the infrastructure of the new industrial zones.
This significant expansion will further boost KHTP’s industrial ecosystem, making the park an ideal place to support the needs of both global and domestic technology and advanced industry players. From being able to select and occupy their preferred industrial lots to being based in an ecosystem that allows companies to run their global manufacturing, assembly and testing, R&D, design and development and distribution operations from one location, investors will have everything they need to ensure a rapid and seamless start-up period.
KHTP is a high-tech industrial park offering a complete ecosystem where manufacturing businesses can thrive and attract partnerships with supply chains for cost-effectiveness and smoothness of operation.
Top talent and services
With a majority of the local highly skilled workforce based in Kulim, and a number of experienced expatriates already present on-site for knowledge transfer, hiring new talent to support businesses is achievable through collaboration with universities and technical institutions. The unique industry-academia collaboration existing in KHTP has assisted manufacturing businesses in the retraining and reskilling of employees.
In addition to industrial and leasing needs, KHTP also offers all the services needed to start operations as quickly as possible. Our Corporate Advisory acts as a one-stop center for investors in providing services and consultations relating to Malaysian government agencies in matters such as applications for licenses, and consent and registration in setting up new businesses in Malaysia. The scope of our service includes advising on the preparation of necessary documents and the submission of applications to the relevant Malaysian government agencies until approval is granted.
Businesses are invited to discover the benefits of basing their manufacturing operations in Malaysia with its diversified, multicultural society, mainly at KHTP with its integrated industry ecosystem, where we can help your manufacturing businesses reach new heights. Get in touch with us at: https://www.khtp.com.my
