MALAYSIA: Prime Minister Anwar Ibrahim officially launched construction of the Penang LRT Mutiara Line medium capacity metro with a groundbreaking ceremony on January 11.
The first phase of the Mutiara (‘Pearl’) Line will run 23·7 km along Penang Island from Penang South Reclamation Project Island A to Komtar in George Town with 19 stations.
A 8·32bn ringgit civil works contract covering construction of the elevated guideway, stations, depot at Island A and associated works was signed on January 13 by the SRS Consortium of Gamuda (60%), Loh Phoy Yen Holdings (20%) and Ideal Property Development (20%). Completion is envisaged within six years of the notice to proceed being issued.
Gamuda said the project is ‘a significant first step in transforming the state’s public transportation system’, and aims to encourage a shift to public transport to reduce private car usage, decrease vehicle emissions, improve air quality and contribute to a healthier urban environment.
Tendering is currently underway for a turnkey contract to design, supply, commission and maintain the railway systems. The procurement is open to Malaysian companies, with foreign contractors able to have a stake of up 49% in a joint venture or consortium.
Tenders are to be called in July for the second civil works package, covering a 5·5 km two station extension from Komtar to Macallum Station in George Town. This will include a major bridge across the Penang Strait to Penang Sentral multimodal transport hub in Butterworth. This contract is expected to be awarded by early 2026.
The Mutiara Line was initially being developed locally by the Penang state government, but the federal government took over in March 2024. The project promoter and future owner is the MRT Mutiara subsidiary of the Ministry of Finance’s Mass Rapid Transit Corp which acts as the national metro developer.
The overall project is expected to cost 10bn to 13bn ringgit. About 40% of the subcontracts will be distributed to companies run by ethnic Malays, with priority for Penang-based companies. The Ministry of Transport said the project would create job opportunities, develop local technology and strengthen the domestic supply chain.
