GEORGE TOWN: A 10-minute ride through the air to Penang Hill is set to become a reality, with Bank Pembangunan Malaysia Berhad (BPMB) committing RM367.2mil to back the hill’s cable car project.
The financing deal with project concessionaire Hartasuma Sdn Bhd marks a major step forward for the much-discussed plan to improve access to Penang Hill.
Once completed, the cable car system will have a carrying capacity of up to 1,400 passengers per hour in each direction, offering a quicker, more scenic journey from the Penang Botanic Gardens to the summit.
The project also supports Penang’s broader goals for sustainable tourism and long-term infrastructure development.
Hartasuma, an established player in transport engineering, will develop, finance, operate and maintain the system.
At the signing of the financing facility agreement here on Wednesday (Aug 6), BPMB managing director Mohamed Nazri Omar said the project reflects the bank’s role in supporting national development with impact-driven capital.
“This is BPMB Group’s first blended finance initiative, combining debt financing and equity investment,” he said.
“We are proud to support a project that builds on Penang Hill’s longstanding appeal as a premier eco-tourism destination.
“Visitor numbers are steadily rebounding with 1.8 million in 2024, up from 1.6 million the year before, and approaching pre-pandemic levels of 1.9 million.
“With the cable car in place, annual visitation is expected to nearly double, reaching up to 3.96 million by 2035 — a clear sign of the project’s potential to elevate Penang Hill’s appeal on the global stage.
“More than just a transport solution, the cable car offers resilience and capacity.
In doing so, it not only enhances the visitor experience but also unlocks new socio-economic opportunities with up to 300 jobs created during construction and over 100 more during operations,” he added.
The equity portion of up to RM30mil is structured via Musharakah under BPMB Dana Sdn Bhd and supported by the National Energy Transition Facility (NETF), aligning the project with Malaysia’s low-carbon transition agenda.
Hartasuma Executive Director Tan Sri Ravindran Menon called the cable car a legacy project that will be remembered for generations.
He said the system is expected to be ready by early 2027.
“We are building more than a cable car. We are building a shared memory, one that will be passed down in stories of those who journey here,” Ravindran added.
Chief Minister Chow Kon Yeow said the cable car will complement—not replace—the funicular, helping manage the growing number of visitors. “This project is no longer theoretical. It is urgent,” he said.
As a long term plan, Chow told reporters later that the state was exploring the possibility of extending the cable car to Gurney Bay, 2.5km away, after it is up and running.
