Chow (fourth from right) receiving a souvenir from Loo after the launch of the Penang Global Business Services (GBS) Conference 2025 in Penang. — Photos: ZHAFARAN NASIB/The Star
PENANG is strengthening its bid to become Malaysia’s leading Artificial Intelligence (AI)-driven digital hub with the unveiling of GBS@Technoplex.
The new 10-storey hybrid office development will push the state’s dedicated workspace for Global Business Services (GBS) to over one million square feet, the largest state-developed GBS cluster in the country.
Penang Chief Minister Chow Kon Yeow, who announced the project at the seventh Penang GBS Conference 2025, said the expansion came as Penang’s GBS sector continued its rapid rise.
He said Penang now had over 90 GBS and shared services companies employing more than 20,000 professionals, backed by strong investor appetite that saw RM14.7bil in approved services- sector investments last year.
Conference participants interacting with the quadruped robot Unitree Go2 Air.
Chow said AI was already transforming how companies operated, making it essential for Penang to deepen its digital capacity.
“AI is becoming a core enabler across industries.
“It is changing how we work, how we innovate and how we deliver value,” he said at the conference themed “AI in Action: Transforming the Future of GBS”.
He said Penang’s next chapter would see service functions evolve into intelligence-driven operations, with AI enhancing human skills to deliver smarter and faster outcomes.
Penang’s economic fundamentals, he added, provided a strong base for this transition.
Penang recorded RM116bil in gross domestic product (GDP) in 2024, with the services sector contributing 48% and manufacturing 46.5%.
Chow said Penang’s digital push was aligned with Malaysia’s plan to expand the national digital economy to 25.5% of GDP by year end.
His main announcement was the development of GBS@Technoplex, to be built by the Penang Development Corporation (PDC) in Bayan Lepas Technoplex.
The green-certified building will feature flexible layouts, a 5kN floor loading capacity, EV-ready facilities and a 100% backup power supply.
Targeted for completion by end of 2028, it will support GBS, integrated circuit (IC) design, digital operations and R&D teams that require modern, high-performance work environments.
The new building joins PDC’s existing hybrid office projects –GBS@Mayang, GBS@Mahsuri, GBS TechSpace and GBS By The Sea – within the Penang IC Design & Digital Park.
Chow said Penang remained the only state with a dedicated series of GBS facilities built by a government agency.
He said the Technoplex project would only begin construction once 40% of the space has been pre-let, similar to the model used for GBS By The Sea.
“We don’t want to build without committed tenants.
“Once the 40% threshold is reached, we will proceed,” he said.
Currently, about 20% of potential tenants have registered interest in the new building, which will offer around 150,000sq ft of space.
InvestPenang chief executive officer Datuk Loo Lee Lian said Penang and Selangor were Malaysia’s two main GBS hubs, but the type of services each attracted differed.
“Selangor tended to draw large fintech and banking operations requiring 5,000 to 8,000 staff.
“Penang is a more niche and technical GBS hub, focusing on analytics, engineering, digital support, IT services, supply chain, IC design-related functions and higher-value roles requiring 500 to 2,000 employees.
“Penang focuses on more technical and specialised GBS operations,” she added.
Loo said the development of dedicated GBS facilities itself was a strong incentive for companies considering relocation or expansion into Penang.
“Having modern, flexible, ready-to-use spaces gives us an edge. It provides confidence to investors,” she said.
In conjunction with the conference, Chow also launched the Penang GBS Nodes Map, outlining the locations of more than 90 GBS companies across the island and mainland, along with state-developed buildings and talent clusters.
The map is available on InvestPenang’s website.
