KUALA LUMPUR: The Perak government is looking for another suitable location for a new high-technology industrial park in the northwestern region, which could be as large as 405 hectares (ha), or 10 times what the state had allocated prior to the 2024 Budget.

Parit Buntar or Bagan Serai could be the new location as there are already some small industrial areas there.

Menteri Besar Datuk Seri Saarani Mohamad said that prior to the tabling of the 2024 Budget, the state government had identified a 40-ha plot of land for the industrial park development in Kerian.

"However, following this announcement (2024 Budget), I see that it requires at least 1,000 acres (405ha) of land. So, we have to look again," he said after attending the National Sports Day at the Sultan Azlan Shah roundabout on Saturday.

Saarani said that the specific location for the development of this industrial area will be announced following discussions with the relevant parties.

"We do not want to reveal anything now, as there could be various implications. For example, when we announced a commercial project in the automotive high-tech valley in Tanjung Malim, suddenly the price of land there rose sharply," he said.

Saarani said that the park's land must not be too expensive, and the cost of any reclamation process must be considered.

He also revealed that the chosen location must be close to Penang Port and the airport.

The new high-tech park will complement the industrial park in Seberang Perai as well as the Kulim high-tech park, he added.

Kerian lies next to the southern district of mainland Penang, with the main towns of Parit Buntar and Nibong Tebal within a 10-minute drive from each other.

There are two bridges leading to Penang Island; the second bridge is closer to Kerian and also to the airport.

RHB Investment Bank expressed optimism about the new industrial park, saying that it will stimulate the local housing market.

"Eco World Development Group Bhd and Tambun Indah Land Bhd are the developers that have projects in the south of Seberang Perai. Over the next year or two, we expect some developers to explore land banking opportunities in the surrounding areas.

"Based on our checks, we understand that there are already some small industrial areas in Parit Buntar," the firm said.

Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said when tabling the 2024 Budget in the Dewan Rakyat on Friday that the government will create a bigger ecosystem for electrical and electronics (E&E) companies in the northern region by opening a high-tech industrial area in Kerian.

According to the Ministry of Investment, Trade, and Industry (Miti), the opening of the high-technology industrial area in Kerian will further empower the E&E industry.

Its minister Datuk Seri Tengku Zafrul Abdul Aziz said that the opening of this area will complete the E&E cluster in the northern region and encourage investors to expand their production facilities to new locations nearby.

He said that the new industrial park will attract more investors to the country's E&E sector.

According to Maybank Investment Bank Bhd (Maybank IB), the opening of the Kerian industrial park will attract developers and have a positive impact on the area.

The investment bank believes it will favour existing industrial park developers because demand and sales of such properties have increased since international borders reopened in April 2022.

"We anticipate this strong sales momentum to continue into 2024, driven by increased investment diversion from China due to the ongoing US-China trade war," it said in a note today.