A new state-backed GBS tower in Bayan Lepas will only break ground once 40% of its space is pre-let, Penang chief minister Chow Kon Yeow said today.
The 10-storey GBS@Technoplex will add about 450,000 sq ft of hybrid office space for GBS, IC design, R&D and digital firms.
GBS, or Global Business Services, refers to companies that handle support work such as finance, HR, IT, design, data and tech tasks for companies overseas. In Penang, these centres focus more on analytics, artificial intelligence (AI)-linked work and engineering support.
Chow said the state did not want to “build something when there are no takers”.
“Once we hit the 40% threshold, then we start the project,” he said after opening the 7th Penang GBS Conference here.
Chow also said Penang was the only state that had built a full line of GBS-dedicated sites through a state agency.
InvestPenang CEO Loo Lee Lian said the tower already had about 20% registered interest and would be one of the biggest GBS buildings under the PDC signature series.
GBS@Technoplex is expected to be green-certified, with flexible layouts, 5kN floor strength (able to hold about 500kg per sq m), full back-up power and EV-ready features.
Loo added that all existing PDC GBS buildings – the GBS@Mayang, GBS@Mahsuri, GBS TechSpace and GBS By The Sea – were “almost fully taken up”.
When completed in 2028, Penang’s total GBS space in the Penang IC Design & Digital Park will exceed one million sq ft.
Brick-and-mortar offices still relevant
Asked if offices were still needed in an AI age, Chow said firms were now directing staff to return to a shared workplace.
“Human interaction is very important … a technologist cannot work alone. AI will enhance skills but it will not replace everyone,” he said.
Loo meanwhile said Penang’s GBS scene was more technical and niche, unlike Kuala Lumpur which draws large fintech hubs.
“Ours is more niche. We don’t do call centres, which are too low-cost. We cannot compete with the Philippines or India,” she said, adding that demand was currently strong for analytics, AI work, engineering support and digital design.
