MRT Corp confirms green light for Penang LRT construction

In a statement today, the company said the NTP was issued after the consortium fulfilled all of the key contractual conditions, with the civil works package officially taking effect on June 23.

It said preliminary soil testing and environmental checks were ongoing, with advanced works like piling and utility relocation slated to begin in August. Major construction is expected to commence in late 2026.

MRT Corp also announced the appointment of MMSB Consult Sdn Bhd as the project’s independent consultant engineer, tasked with reviewing each phase of the project, from design to operations, to ensure compliance with safety and regulatory standards.

“The scope of work includes a thorough review of the design, construction, testing and commissioning, and operation and maintenance phases, ensuring adherence to all relevant project requirements, standards and regulations,” it said.

The RM8.31 billion contract was awarded in January, but work was delayed until MRT Corp gave the go-ahead in the form of the NTP.

The project covers a 24km stretch from Komtar in George Town to Island A in the Penang South Island project, with 19 stations and supporting works.

The federal government took over the LRT project through MRT Corp from the Penang government in March last year.

SRS Consortium includes Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, each holding a 20% stake. MRT Corp, a unit of the finance ministry, is the asset owner and project manager.

Two more packages remain. The second, a 5.5km cross-strait segment, is now out for tender. The third, a turnkey systems contract, closes for bids on Aug 11.

The Mutiara Line will span 29.5km overall with 21 stations, linking a reclaimed island near the airport to Komtar and onward via a cross-channel bridge to Butterworth. MRT Corp has pegged the full cost at RM13 billion, with completion targeted by 2031.