Penang is set for significant infrastructure and social improvements after securing approval for nearly half of its priority projects in the federal Budget 2026. The state government has welcomed the inclusion of these crucial initiatives, which Chief Minister Chow Kon Yeow stated would bring “direct benefit to the people of Penang” through enhanced public services and vital infrastructure upgrades.
The approved projects, championed by the state during an engagement session last March, address long-standing issues. A cornerstone of the allocation is the widening of the North-South Expressway between the Juru and Sungai Dua Toll Plazas, a critical step towards alleviating the area’s severe traffic congestion.
The budget also delivers substantial upgrades to public health and water security. It includes the construction of the Kubang Semang Health Clinic and an Integrated Health Complex in Seberang Perai Tengah. To safeguard the state’s water supply, projects include upgrading raw water intake points at Titi Kerawang and Teluk Awak, and installing new pipelines to the Teluk Bahang Dam.
Community infrastructure received a significant nod with the planned upgrading of the Bertam Sports Complex in Kepala Batas and the construction of an underground passage linking Jalan Mount Erskine to Jalan Burma, which will include improvements to several key junctions.
Beyond these state-specific projects, Penang will also benefit from national allocations. A RM2.3 billion fund to enhance airport management efficiency will impact Penang International Airport, while the Sungai Nyiur Flood Mitigation Project in Seberang Perai Utara is expected to better protect local communities from flooding.
The budget also featured notable social investments, including nearly RM250 million from UDA Holdings for the development of wakaf land and a RM300 million commitment from the Retirement Fund Inc (KWAP) for a senior citizen housing project in Kepala Batas.
While celebrating the inclusions, Chow Kon Yeow emphasised the need for further details on the projects’ implementation to ensure timely execution. He also looks forward to the Prime Minister officiating the launch of the 24th Urban Transformation Centre in Seberang Perai this November. The budget allocations mark a pivotal step forward in addressing Penang’s infrastructure and social development needs.
