Penang LRT Tender Adjusted, Strategic Focus Shifted to Cost Control. More potential participants have the opportunity to participate.
Project Overview & Budget
Penang LRT Mutiara Line spans 29.5 kilometers and includes 21 stations. In late August this year, Penang Chief Minister Chow Kon Yeow set a 1.68 billion ringgit budget ceiling for the project and will tender it in three major packages.
Penang LRT Tender – Phase 1 Civil Engineering: Awarded & Optimized
The SRS Consortium, led by Gamuda Berhad, has been awarded the Phase 1 civil engineering package (Silicon Island to Komtar section). Its original contract value reached up to 830 million ringgit, covering the construction of a 24-kilometer line and 19 stations. MRT Corp revealed it successfully cut the cost to 793 million ringgit through value management and engineering optimization.
Penang LRT Tender – System Package Tender: Ongoing Progress
MRT Corp has asked bidders for the system package to submit alternative EMU proposals, which need to cover medium-capacity units with lower technical requirements. Local train assembly and testing are no longer a priority, clearly shifting focus from “localized manufacturing” to “cost control”. The new plan shortens trains from 70 meters to 46 meters (converting from 4-car to 3-car formation), reduces max axle load from 13 tons to below 12, and adopts GoA3-level autonomous driving for initial operation while retaining future expansion room.
The package’s estimated cost is less than 350 million ringgit (around 80 million US dollars), but adding train leasing and long-term maintenance may push the amount higher. Seven consortia are participating in the bidding—Chinese enterprises like CRRC and CHEC join multiple lines. Sources say the Lion Pacific-WCT led consortium quoted the lowest at 270 million ringgit, though technical proposals account for 70% of the evaluation. The final result is expected in October or November.
Phase 2 Civil Engineering: Upcoming Tender
The Phase 2 civil engineering package covers the Macallum to Butterworth cross-sea section. People expect relevant authorities to issue their tender documents before October this year. The 5-kilometer section has a maximum clearance of 62 meters to ensure ship passage between Butterworth North and South Ports.
MRT Corp’s Explanations
MRT Corp stated it asks bidders to clarify proposals to better understand localized cost drivers and avoid passing related costs to the government. It further explained that Penang LRT’s future civil facilities have reserved sufficient capacity for over 30 years of passenger growth, with platforms able to accommodate 70-meter-long trains. However, the project will start with medium-capacity systems (GoA3 autonomous driving with on-board attendants) to balance cost-effectiveness and expansion flexibility. These trains have lower signal system requirements than the originally tendered GoA4 fully automatic driverless ones.
