You didn’t engage us, IJM-led consortium tells Penang on Batu Kawan bid

PETALING JAYA: A consortium led by IJM Properties Sdn Bhd says the Penang government rejected its proposal to develop Batu Kawan Industrial Park 2 (BKIP2) without engagement or an opportunity for clarification.

The consortium said the “summary rejection” of its proposal went against the objectives of the request for proposal process.

“Open dialogue would have allowed us to address concerns, align expectations and demonstrate the proposal’s alignment with the state’s strategic priorities,” it said in a statement today.

It said its proposal under the RFP process allowed “flexibility for bidders to propose enhancements”, which were optional and not conditional.

“In this spirit, the consortium focused on quality, feasibility, and sustainable solutions, proposing optional variations aligned with the RFP’s broader goals.

“These solutions are best explained and clarified in a face-to-face meeting,” it said.

FMT previously quoted a source as saying the bid, made by the consortium late last year, was rejected without any reason provided.

On Nov 28, however, chief minister Chow Kon Yeow told the Penang state assembly the proposal by the consortium – comprising IJM with a 60% stake, and Aspen Vision All Sdn Bhd and Mettiz Capital Sdn Bhd holding the remaining 40% – did not comply with five of the nine main requirements.

Chow said the requirements included terms on land use, ownership and payment methods. He said the consortium made additional requests that went against the principles of good governance.

Thus, he said, the Penang Development Corporation unanimously rejected the bid and decided to call for a fresh RFP with updated conditions.

The consortium said it had only suggested direct alienation of the land as an optional arrangement, “following precedents where such practices have facilitated streamlined execution”.

It also said its guaranteed cash return of RM818 million adhered to the RFP’s terms, which it claimed “explicitly allowed flexibility in proposing enhancements to cash returns and payment timelines”.

“Assertions that the consortium’s offer was non-compliant are inconsistent with the terms and intent of the RFP,” it said.

The consortium said it proposed a fully industrial development plan despite the RFP’s specification of a 90% industrial and 10% mixed-use ratio.

“We believed a fully industrial plan – featuring a 400-acre solar farm to power the industrial park – would better align with Penang’s ESG priorities and long-term goals.

“The plan complements the existing mixed-use elements in BKIP1, further establishing BKIP2 as a model for sustainable industrial development,” it said.

The consortium did not say it is making a fresh bid.