Penang LRT Extension to Seberang Perai to Drive Balanced Growth and Connectivity, Says Prime Minister

BUKIT MERTAJAM (Nov 8, 2025) — The federal government has confirmed that the Penang Light Rail Transit (LRT) project will be extended to Seberang Perai, ensuring balanced economic and infrastructure development across both the island and mainland regions of Penang.

Prime Minister Datuk Seri Anwar Ibrahim said the decision reflects the government’s commitment to equitable growth that benefits all communities, enhancing accessibility and supporting long-term regional expansion.

“When the original plan was presented to me, it only covered Penang Island,” Anwar said. “As someone born in Penang and raised in Seberang Perai, I did not want the project to stop there. I proposed that the LRT cross the sea to Seberang Perai, extending to Penang Sentral.”

The Prime Minister added that this expansion would prevent the perception that development is concentrated only on the island and ensure that mainland areas such as Permatang Pauh, Bagan, and Nibong Tebal also benefit from improved public transport.

A Strategic Move for Balanced Urban Development

The extension of the Mutiara Line LRT, Malaysia’s first light rail system outside the Klang Valley, will improve mobility between Penang Island and Seberang Perai, reducing road congestion while boosting investment potential for commercial and industrial properties across the northern corridor.

Anwar clarified that the increased project cost was not due to uncertainties but rather the inclusion of the cross-sea extension, which aims to link Penang’s urban, industrial, and suburban zones under one connected network.

“The LRT expansion ensures inclusive development for both regions and aligns with our broader vision to stimulate sustainable, high-impact growth,” Anwar said.

Boosting Economic Linkages and Industrial Growth

The Penang LRT’s Mutiara Line will span 29.5 kilometres with 21 key stations, connecting the Penang South Reclamation area, Komtar Station in George Town, and Penang Sentral in Seberang Perai. The system will enhance connectivity between industrial estates and logistics hubs, encouraging greater regional integration.

Property analysts view the move as a potential catalyst for new industrial land developments in mainland Penang, similar to the growth observed in Selangor’s industrial corridors such as Puchong, Subang, and Bukit Jalil, where accessibility and infrastructure continue to drive factory and commercial property demand.

RM3 Billion Traffic Dispersal Project to Ease Congestion

The Prime Minister made the announcement during the groundbreaking ceremony for the Juru Toll Plaza–Sungai Dua Toll Plaza Traffic Dispersal Project (PTJSD), valued at RM3 billion. The project is designed to reduce peak-hour travel time from one hour to just 20 minutes, with 30% of motorists expected to shift to the new direct route.

The initiative covers key growth areas including Juru, Sungai Dua, and Permatang Pauh, with implementation led by the Malaysian Highway Authority, PLUS Malaysia Bhd, and the Public Works Department (JKR).

Anwar urged all agencies to accelerate the works, saying, “Although the projected completion is between 24 and 48 months, I do not want delays. Deliver results faster so that the people can experience the benefits sooner.”

Strengthening the Northern Growth Corridor

The Penang LRT expansion and PTJSD project together signify a major boost for the northern region’s transport infrastructure, reinforcing Penang’s status as one of Malaysia’s most connected and investment-ready states.

As improved accessibility attracts logistics players, manufacturers, and developers, the move is expected to elevate property activity in the northern industrial belt, mirroring the industrial transformation already seen across Selangor’s key growth zones — from industrial land in Selangor to commercial property in KL and industrial property in the Subang area.