BATU KAWAN – Multinational retail conglomerate Ikea has high hopes that the upcoming township where it is based here, will evolve into a leading cosmopolitan enclave for the northern region.
Ikea Batu Kawan is unique in the sense that it is the first flagship store of the global retail giant in Malaysia to invest and operate an establishment well before the growth of a township.
But based on the projections by the Penang Development Corporation (PDC), Batu Kawan is poised to become a new catalyst for economic growth up north. This is despite hiccups such as the Covid-19 pandemic and the uncertain global economy.
"Hence, we are confident that we will also grow in tandem with this place," said Ikea Batu Kawan store manager Pathmalingam Arumugam here.
Unlike in previous locations such as Cheras and Damansara in the Klang Valley where the high density was built earlier, here at Batu Kawan, Ikea is a pioneering anchor retail investor operating out of Bandar Cassia.
It is technically the first retail investor to begin operations here besides the Digital Village Outlets' Mall and locally set up restaurants. This is while it waits for the township to mature and take shape.
Residents and retailers, including foreign direct investors in the adjacent Batu Kawan Free Industrial Zone, are mushrooming in the third satellite township in Penang. Although, some critics are wondering whether the growth can be faster.
The other satellites are in Bayan Baru on the island and in Seberang Jaya on the mainland.
In Bandar Cassia, the main catalyst is the Aspen Vision City area, which is under the tutelage of master city developer Aspen Development Group.
Sitting on 247 acres of prime freehold land for commercial and residential purposes, Ikea Batu Kawan is in the centre of everything which vibrates in the Vision City here.
The entire development area of Batu Kawan is about 6,000 acres, and it has been earmarked for success based on the fact that it is linked to Penang's Batu Maung on the island through the Sultan Muadzam Shah (Second Penang Bridge).
Besides industrial, there is also an education hub with Paramount Utropolis and KDU University College and the Columbia Asia Hospital. A host of other attractions have been lined up for the township.
Pathmalingam said that he was pleased with the Aspen Group, who often invites Ikea to be present at various development stages of the township.
To reflect its confidence, Ikea has convinced its sister company – the mall operator Klippa – to manage the shopping mall here with Ikea as its anchor tenant.
Recently, it also opened up a Swedish Cafe outlet to showcase its gastronomic delights while leaning on Penang's reputation as the top street food haven.
Pathmalingam said that other than the staple inhouse delights such as meatballs and salmon, there are also the local favourites of nasi lemak and curry puffs.
"The cafe is a space for all to chill after shopping and for customers to experience Fika, a tradition of Swedish food culture.
"Fika encourages people to be mindful and take time – out to relax and bond over a good cup of our independently farmed and sustainably coffee as well as pastries."
Pathmalingam said that they are fully aware of the competitive nature of food in Penang. But he also believes there is room within the taste buds of tourists and northerners to take in the delights of Swedish food.
He also looks forward to collaborating with local food entities to promote various cuisines and the highly reputable Penang street food here.
Food connoisseur Khoo Boo Lim welcomes the effort to showcase food in Penang and may the best taste win over the discerning minds of the residents.
As for the future outlook, Pathmalingam said that although online sales have dropped by 10% to 15%, it is balanced by the reopening of the conventional Ikea store, where more people are coming in person to shop, dine and relax here.
It is also open to office workers during lunch during rush hours.
As far as staffing is concerned, Pathmalingam said that there are about 270 co-workers and they are sourcing for an additional 120 staffers with open interviews set now.
"There are many career opportunities at Ikea and we hope that we can replicate the success of all of our stores worldwide in Batu Kawan."
He smiled broadly when told that Ikea is considered the prime mover to brand Batu Kawan as what was originally described as the third satellite township for Penang.
Pathmalingam echoed it, saying that the growth of this township is not just confined to Penang, as Ikea hires co-workers from Taiping and Sungai Petani, towns in neighbouring Perak and Kedah, respectively.
Ikea is a Swedish-founded but now Dutch-based multinational conglomerate that designs and sells assembled furniture, appliances, and home accessories, as well as other items related to households. – The Vibes, June 16, 2022
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