GEORGE TOWN, July 29 — Total expenditure for the Penang Mutiara LRT Line will be capped at RM16 billion, despite escalating construction costs and inflation, MRT Corporation chief executive officer Datuk Mohd Zarif Hashim pledged today.
Speaking at a media luncheon, Zarif addressed the evolution of the project’s cost, explaining that the initial RM10 billion estimate cited before the federal government took over did not include significant expenses like land acquisition.
“Construction costs have increased between 30 and 40 per cent over the last 10 years,” he said, noting that the RM13 billion budget approved by the Cabinet earlier this year also did not fully factor in inflation, material price hikes, and land acquisition.
If all factors were included without cost control, he said the project could potentially reach RM19 billion.
“But we will not do that. We are keeping costs as low as possible. We are calling for tenders to keep costs low so that we can bring down the total project cost to below RM16 billion,” Zarif said, asserting that the Mutiara line will be the most reasonably priced LRT system in Malaysia.
He explained that while land acquisition costs are high, MRT Corp is negotiating with the state government for nominal charges on state lands to help manage expenses.
The Mutiara Line, which will span 29.5km with 21 stations from Silicon Island to Komtar and across to Penang Sentral in Butterworth, will incorporate several key features.
The trains will use a Level 3 autonomous system, which does not require a driver but will have an attendant on board, helping to lower operational and maintenance costs.
The line will include a 5km bridge linking the island to the mainland, rising 62 metres above sea level to allow large container ships to pass underneath.
It will also feature an uncovered pedestrian and cycling walkway, which will be closed during adverse weather conditions.
The line will have an optimised depot site at Pesta that has been significantly reduced from 37 acres to 11 acres through design adjustments and land optimisation.
Zarif stressed that the Mutiara Line must become financially sustainable within five years of operation, without heavy reliance on government subsidies.
“We expect to operate it and make it sustainable from fares and advertising revenues,” he said.
The state government would consequently not need to support the operational costs and can use the funds to build the next three lines, he explained.
Zarif conceded that the Mutiara Line alone will not solve all of Penang’s public transport woes, but described it as an “important first step.”
“Penang needs at least another three LRT lines, with a total of four, before we can see a real change in public transportation here,” he said. “Once the next three steps are implemented, we will see dramatic changes.”
The Mutiara Line is expected to be completed in 2031, with all four proposed lines — covering areas like Tanjung Bungah, Batu Ferringhi, and Air Itam — projected for full completion by 2050.
