Island 88: How a Hong Kong family revived an empty Penang mall

Island 88 was almost empty when a Hong Kong family bought it, The Standard reported. The Tanjung Tokong mall changed hands just before the March 2020 lockdown. Six years on, it is filling up again.

The Law family says it saw more in Penang than a deal. Managing director Philip Law said the culture, heritage and food drew them in.

Here is how the old Island Plaza lost its shoppers, what the family changed and what visitors find there now.

Island 88: From landmark to empty mall

The mall opened as Island Plaza in December 1995 at a cost of RM200 million, The Standard said. It brought brands such as Versace, Fila, Oshkosh B’gosh and Mizuno to Penang for the first time.

In the 2000s, newer and larger malls opened. They drew shoppers away from Tanjung Tokong.

Its anchor, Metrojaya, closed its department store in 2011, citing planned renovations. The mall then changed hands more than once.

An investment fund bought it in 2007 and spent RM40 million on renovations, the report said. A Penang property specialist later told a local daily that the owners had wanted to sell for some time.

He said the building was deteriorating, and the owners quickly accepted the Law family’s offer.

By 2020, it had been without a department store anchor for nearly a decade. Most of its shoppers had gone elsewhere.

The Law family bought Island 88 just before the movement control order began on 18 March 2020. The price was not disclosed.

How the Law family reshaped the mall

The buyer was Paul Law, who also owns The Boutique Residence Hotel Penang and Museum Hotel Penang. He chairs the mall’s management corporation. His son, Philip, is managing director.

Philip said the family saw Penang’s potential from the start. It was drawn as much by the state’s culture, heritage and food, he said.

Reconstruction began in April 2023. The family borrowed its thinking from Hong Kong’s Central Market, Philip said. There, a heritage landmark became a place for dining and the arts.

Not everything made the trip. “What cannot be directly transplanted is the pace and density,” Philip said. Hong Kong relies on fast commuter crowds, while Penang has a more relaxed, community-driven way of life.

So the layout was reworked for slower meals and family outings. The mall is now 76% occupied, up from about 60% in April 2025.

Philip said the mall is “fully on track” to hit 80% by the end of 2026. He said success does not rest on any one measure.

What visitors find at Island 88 now

Food leads the mix, Philip said. It runs from local fare to Japanese, Thai and Vietnamese, with more new concepts being sought.

Tenants were chosen around nearby international schools, colleges and homes. Food and art projects are aimed at students and younger visitors, alongside family shops and restaurants.

The calendar is busy. After a Mid-Autumn mooncake fair, the mall is lining up a Halloween celebration and an international bridal fashion week. A sports and outdoor expo, a beauty and wellness expo and Christmas events follow.

A new grocer is due in November. Ben’s Independent Grocer (BIG) will open its first outlet in Penang and the northern region. It replaces Mercato, which left on 30 July for Gurney Plaza.

Philip said the mall is not competing on mega-scale space. It is positioning itself as “a high-quality, curated neighbourhood destination”.

Most visitors are still local, from Tanjung Tokong and Batu Ferringhi. Philip said the mall also sees more regional tourists from Indonesia, along with visitors from Hong Kong, Korea and China.

CJ.MY has also covered Penang tourism news and Penang food spots.