Penang LRT Contractor Appointment Expected by Year-End, Confirms Transport Minister

KUALA LUMPUR, Oct 28 — Malaysia’s long-awaited Penang Light Rail Transit (LRT) project is gaining traction, with the government expecting to appoint the systems and rolling stock contractor before the end of 2025, according to Transport Minister Anthony Loke Siew Fook.

The tender evaluation for the systems and rolling stock package is currently in its final technical and financial assessment stage, marking a major milestone for the multi-billion-ringgit infrastructure project.

Meanwhile, an open tender for the second civil works package (CMC2) — covering the Macallum-to-Penang Sentral alignment and a new bridge across the Penang Strait — will be launched soon. This phase is targeted for finalisation by mid-2026, with the overall LRT expected to be completed by December 2031.

Land Acquisition and Project Scope

Loke confirmed that land acquisition is ongoing across approximately 270 plots, with the Penang state government having already provided access to 103 state-owned lots to facilitate early works. The remaining private land acquisitions will be handled under the Land Acquisition Act 1960, though compensation amounts are still under review.

The 29.5-kilometre LRT route, also referred to as the Mutiara Line, will feature 21 stations linking Penang Island and Seberang Perai — significantly improving cross-strait mobility and long-term economic integration.

Initially valued at RM10 billion in 2016 for the Bayan Lepas–Komtar alignment, the LRT project was later expanded under federal oversight to extend toward Penang Sentral, raising the projected cost to RM13 billion in 2024.

The first major package, awarded in January 2025 to SRS Consortium, covers a 24km section from Komtar to Island A under the Penang South Reclamation project, including 19 stations. The consortium, led by Gamuda Bhd (60%), also includes Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, each holding 20%.

After a value management review in April, the contract value was reduced from RM8.31 billion to RM7.93 billion, with budget ceilings revised to between RM16 billion and RM17 billion overall. Loke emphasized, however, that the final project cost will depend on ongoing evaluations and design refinements.

Broader Economic and Property Market Impact

The Penang LRT is expected to reshape northern Malaysia’s connectivity, supporting economic growth not only on the island but also across major logistics and business corridors nationwide. Improved accessibility could stimulate new investment demand for industrial land in Selangor and commercial property in KL, as companies expand their operations to leverage improved transport infrastructure.

Similarly, developers and investors looking at office space in Bukit Jalil, factories in Puchong, or industrial property in the Subang area may see ripple effects from national infrastructure upgrades that enhance mobility and attract talent.

The Penang LRT is more than just a state project — it’s part of Malaysia’s broader push to modernise its urban transport network, strengthen regional trade links, and create long-term value across the property, industrial, and investment sectors.