The Penang Hill Cable Car project is set to move into its implementation phase, following the signing of a RM367 million financing agreement between Hartasuma Ropeways Sdn Bhd and Bank Pembangunan Malaysia Berhad (BPMB). The new cable car system is intended to supplement the century-old funicular railway, not replace it, as visitor numbers to Penang Hill continue to rise.

Penang Chief Minister Chow Kon Yeow clarified that the cable car is a “complementary solution” to manage congestion, enhance visitor experience, and provide a more sustainable way to handle peak periods. As of July 25, the funicular railway had already recorded over one million riders this year — a milestone that highlights growing tourism demand.

Penang Hill Station (for illustration purpose only)

“The cable car will integrate with the upgraded Astaka building and offer a 10-minute journey from the Penang Botanic Gardens to the hilltop, with a capacity of 1,000 passengers per hour,” Chow said. He added that the project supports the Penang2030 vision of a family-focused, green, and smart state.

Chow also revealed that a feasibility study is underway for a potential second cable car line linking Penang Botanic Gardens and Gurney Bay, about 2.5km apart. This reflects the state’s broader commitment to improving accessibility and strengthening Penang’s tourism infrastructure.

Describing the agreement as a move “from concept to construction,” Chow said the cable car project has gone through rigorous environmental studies and stakeholder engagement. The redevelopment of the Astaka site has also entered its construction phase, further transforming the Penang Hill arrival experience.

BPMB managing director Mohamed Nazri Omar said the project is expected to generate 300 jobs during construction and over 100 permanent roles during operations. With tourist arrivals approaching pre-pandemic levels — 1.8 million in 2024 compared to 1.9 million in 2019 — the cable car is expected to nearly double annual visitation to 3.96 million by 2035.

Hartasuma executive director Tan Sri Ravindran Menon said the financial close marks a defining moment, calling it a “legacy project” for Penang. “We are building more than a cable car — we are building a shared memory,” he said.

Penang Hill Corporation (PHC) general manager Datuk Cheok Lay Leng added that the cable car will serve as an effective alternative to the funicular railway, helping manage peak-hour crowding while maintaining the heritage value of the existing system.

Targeted for completion in early 2027, the cable car project is a key step in making Penang Hill more accessible and future-ready, balancing development with conservation.