Penang Drives Forward with Major Transport Overhaul in 2025 Budget Plan

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Penang is set to benefit significantly from several major infrastructure projects outlined in the Budget 2025, announced by Prime Minister Anwar Ibrahim. These initiatives include the development of elevated highways, the implementation of a light rail transit (LRT) system, and the expansion of the Penang International Airport.

The Penang LRT project, also known as the Mutiara Line, is a key component of these infrastructure improvements. This entirely elevated rail system will span 28 kilometers, starting from the reclaimed Silicon Island and extending to Komtar in the city centre, with a connection to Butterworth on the mainland. The project, which has been allocated a ceiling of RM13 billion, is expected to begin this year and is scheduled for completion by 2030.

According to Zairil Khir Johari, State Executive Councillor for Infrastructure and Transport in the Penang state government, “We would have done it if we had the resources but when we were planning it, it would have cost too much for us. But, thankfully, the federal government is able to fund it.”

In addition to the LRT, Penang will see significant improvements to its road network. The Juru and Sungai Dua Elevated Highway projects are aimed at alleviating the heavy traffic congestion in the area.

These projects involve elevating the highway from Juru to Sungai Dua, which is part of the PLUS road network. Discussions are ongoing at the federal level between the Works Ministry and the public-private partnership unit in the Prime Minister’s Department to finalize the details.

Another road project on the horizon is the Pan Island Link One (PIL 1), a 20km highway estimated to cost between RM8 billion and RM9 billion. This project is intended to further reduce traffic congestion on the island. Additionally, the state is working on its own projects, including the RM850 million Ayer Itam bypass and a new road to Batu Ferringhi, estimated at around RM1 billion.

The expansion of the Penang International Airport is another critical infrastructure development. Funded by Malaysia Airports Holdings Bhd (MAHB) under a compensation mechanism by the government, this project is expected to cost more than RM1 billion.

The expansion will almost double the passenger terminal capacity to 12 million passengers a year, up from the current 6.5 million. Zairil Khir Johari noted, “The Penang International Airport is very crowded and congested, particularly now that we have so many new direct flights coming in. Often, the infrastructure just cannot take it, and there have been complaints of long queues and so on. A bigger terminal is definitely needed to deal with the increase in passenger traffic.”

Silicon Island, a reclaimed land area off the southern coast of Penang Island, will also play a significant role in the state’s development. Spanning over 2,300 acres, this area will be developed into industrial zones, infrastructure, housing, mixed development, and commercial purposes, with the first factory expected to begin construction in 2026 and be operational by 2027.

These infrastructure projects are part of a broader national budget that focuses on revitalizing the economy, implementing reforms, and improving the lives of Malaysians. The Budget 2025, themed “MADANI Economy: Prosperous Nation, Well-being of the People,” includes a total allocation of RM421 billion, the largest in the country’s history.

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