The Perai Free Industrial Zone is a free trade zone within Seberang Perai in the Malaysian state of Penang. Located within the suburb of Perai and 4.7 km (2.9 mi) south of Butterworth, the Perai FIZ was established in 1980 with the aim of becoming a major manufacturing hub for bulk items, leveraging its proximity to the Port of Penang and the railway line that links it to the rest of western Peninsular Malaysia.