Penang LRT Stays Within RM16 Billion Budget - MRT Corp

The Penang Mutiara LRT Line will move ahead with a firm budget cap of RM16 billion, despite inflation and escalating construction costs, said MRT Corp chief executive Datuk Mohd Zarif Hashim.

Speaking at a media luncheon, Zarif explained that the earlier RM10 billion estimate, made prior to the federal government's involvement, did not factor in key costs such as land acquisition. He added that even the RM13 billion budget approved by the Cabinet had not fully accounted for inflation, rising material prices, and land-related expenses.
“If we included everything without strict cost controls, the project could reach RM19 billion

“But we won’t let that happen. Through competitive tenders and careful planning, we’re determined to keep it under RM16 billion,” he said.

Zarif added that the Mutiara Line is expected to be the most cost-efficient LRT system in the country. To manage land expenses, MRT Corp is working with the Penang government to secure nominal charges for state-owned land.

The 29.5-kilometre line will run from Silicon Island to Komtar, then cross the channel to Penang Sentral in Butterworth. It will feature 21 stations, including a five-kilometre sea bridge standing 62 metres above sea level, designed to accommodate large shipping vessels.
The line will also include an open-air walkway for pedestrians and cyclists, which will be closed during adverse weather. An optimised depot site at Pesta has been downsized from 37 acres to 11 acres through design efficiency.

The trains will use a Level 3 autonomous system that operates without a driver but includes an onboard attendant, allowing for reduced operational and maintenance costs.

Zarif said the Mutiara Line must become financially self-sufficient within five years of operation, funded through fare collection and advertising revenue. He added that this would free up public funds for future transit lines.

“The Mutiara Line won’t solve everything, but it’s a vital first step

“Penang needs at least four LRT lines to see real change. Once all are in place, the impact will be dramatic,” he was quoted as saying.

The Mutiara Line is scheduled for completion in 2031, with the full four-line network expected by 2050.