GEORGE TOWN: The long-delayed Mutiara Line Light Rail Transit (LRT) project is set to become one of Malaysia’s most cost-efficient and financially sustainable urban rail systems, despite earlier cost escalations and years of delay.
Formerly known as the Bayan Lepas line, the project has now entered its main construction phase and is expected to cost under RM16 billion.
This includes inflation adjustments, land acquisition, and the building of a five-kilometre bridge linking Komtar to Penang Sentral in Butterworth.
Mass Rapid Transit Corporation (MRT Corp) chief executive officer Datuk Mohd Zarif Hashim said a tender for the bridge would be called in October.
He said the original RM10 billion estimate did not include land acquisition or the Butterworth link.
“These additions would typically push the cost to RM18 or RM19 billion, but cost-optimisation measures have saved the government RM2 to RM3 billion.
“This is not about inflating figures. We have restructured the project to ensure practical implementation, minimal wastage, and maximum long-term returns,” he said during a media luncheon at the Eastern and Oriental Hotel here yesterday.
Zarif said MRT Corp is still in discussions with state authorities to use land owned by the state and the Penang Development Corporation to keep land acquisition costs low.
“We are striving for financial sustainability within five years of operation. Achieving break-even is our target,” he added.
Unlike a fully autonomous rail system, Zarif said the Mutiara Line would operate at Level 3 automation — where trains run automatically but with onboard attendants to make real-time decisions.
“This approach reduces complexity and lowers maintenance costs,” he said.
In contrast, Singapore and Kuala Lumpur operate at Level 4 automation, which involves higher technological and maintenance requirements.
The system will be rolled out in 24 construction segments, with six deferred to later phases. On-site activity is expected to pick up significantly by August.
Meanwhile, Zarif said the depot site at Tapak Pesta, previously planned for 37 acres, has been reduced to 11 acres as part of land optimisation and ongoing design adjustments to further reduce the project’s overall footprint.
“Every ringgit counts. We are building infrastructure that Penang cannot afford to miss. Without this, the state risks falling behind in connectivity and economic growth,” he stressed.
The Mutiara Line is expected to be completed by 2030, with four full lines planned by 2050 in line with long-term urban mobility goals.
In February, Transport Minister Anthony Loke told the Dewan Rakyat that a RM13 billion allocation had been approved by the federal government for the project, covering both construction and land acquisition costs.
On July 17, Zarif announced that the project had entered a crucial phase following the fulfilment of contract effectiveness conditions last month, paving the way for the issuance of the Notice to Proceed (NTP).
He said the NTP was granted to Gamuda Bhd after the project met specific implementation prerequisites, setting in motion a structured timeline for the next construction milestones.
The first segment of the Mutiara Line LRT project has been awarded to the SRS Consortium, a joint venture comprising Gamuda Bhd (60 per cent), Loh Phoy Yen Holdings Sdn Bhd (20 per cent), and Ideal Property Development Sdn Bhd (20 per cent).
On Jan 10, Prime Minister Datuk Seri Anwar Ibrahim officiated the groundbreaking ceremony for the Mutiara Line LRT project, marking the beginning of a transformative new chapter in the state’s public transport infrastructure.
It was recently reported that Econpile Holdings Bhd’s wholly owned subsidiary, Econpile (M) Sdn Bhd, secured a RM42.82 million contract from Irama Duta Sdn Bhd to carry out bored piling and related construction works as part of the LRT project.
The 29.5km Mutiara Line LRT will feature 21 strategically located stations and is designed to enhance connectivity between Penang Island and the mainland — reducing road congestion and improving accessibility.
The main route will run from Penang Silicon Island to Penang Sentral and the Komtar station in George Town, with train services set to operate alternately along the line.
© New Straits Times Press (M) Bhd
