As part of the ongoing construction of the Penang LRT Mutiara Line, Mass Rapid Transit Corporation (MRT Corp) has announced a long-term “Free-Flow” traffic management plan at the junction of Jalan Tengah and Jalan Sultan Azlan Shah.

In a statement issued earlier, MRT Corp said the traffic diversion will take effect from May 16, 2026, until Dec 31, 2028, involving a total duration of approximately 960 days. The temporary traffic arrangement is necessary to facilitate piling, pile cap, and structural works for the LRT project.

Under the new traffic plan, motorists travelling from Jalan Tengah towards the Penang International Airport will be required to use the left lane and make a U-turn before the Jalan Mahsuri junction to enter Jalan Sultan Azlan Shah. Those heading towards Komtar may still turn left as usual.

For traffic coming from the Komtar direction towards Jalan Tengah, drivers must use a newly constructed U-turn located in front of the Renesas factory. MRT Corp noted that this U-turn is strictly for light vehicles only.

Meanwhile, motorists from Jalan Tengah heading towards Jalan Kampung Jawa will no longer be allowed to make a direct right turn at the junction. Drivers may instead turn left into Jalan Mayang Pasir before entering Jalan Mahsuri, or continue straight towards the Bukit Jambul roundabout to perform a U-turn.

For those travelling from the airport towards Jalan Kampung Jawa, motorists are advised to turn left at the Sunway Prima junction near the TNB PPU before proceeding to Jalan Mahsuri and making a right turn at the traffic lights.

MRT Corp advised road users to remain cautious and follow all traffic signage and instructions throughout the construction period. Traffic marshals, safety barriers, and traffic cones will also be deployed to help manage traffic flow and ensure public safety.

Despite ongoing geopolitical tensions and concerns over rising inflation, Malaysia’s property sector continues to show resilience, according to a recent report by RHB Investment Bank.

The research house said real estate remains an effective hedge against inflationary pressures, particularly amid rising energy prices linked to the ongoing West Asia conflict. Higher construction costs — driven by increases in building materials, labour, and land prices — are also expected to push up development and replacement costs for new properties.

While some market observers are worried about the possibility of interest rate hikes, RHB IB believes Malaysia’s stronger ringgit should help maintain a stable interest rate environment, providing support for both developers and homebuyers.

The investment bank noted that developers are unlikely to lower their sales targets when announcing their financial results this month. Although some companies may adopt a wait-and-see approach, most developers are expected to proceed with their planned launches.

Demand for properties has also remained relatively stable in the first quarter of 2026, despite uncertainties arising from the US-Iran geopolitical conflict that began in late February.

RHB IB added that developers have not seen any significant impact on profit margins so far, though prolonged global tensions could affect margins in the coming quarters if construction and operational costs continue to rise.

At the same time, developers are actively continuing with asset monetisation and value-unlocking exercises introduced in previous quarters. The bank believes companies pursuing similar strategies could continue to benefit despite broader market headwinds.

The Penang state government has moved to reassure the public that a controversial high-density development proposed for Bandar Gelugor will face rigorous evaluation before any approval is granted.

State Local Government Committee chairman H’ng Mooi Lye told the state legislative assembly that all development applications are assessed holistically, taking into account technical requirements, public interest, and sustainable development principles. “The state government remains committed to ensuring that every proposed development is carried out in a planned and sustainable manner, in compliance with all development principles, guidelines and applicable laws,” he said.

His remarks came on the same day a group of residents staged a peaceful protest outside the assembly, calling on the state to halt the project.

The project in question

The development, proposed by I-Global Property Network Sdn Bhd, involves four residential apartment towers (two 45-storey blocks and two 61-storey blocks), alongside office and commercial components on a 5.8-hectare parcel of former Telekom Malaysia land at Lot 642, Bandar Gelugor. Tens of thousands of residents from surrounding neighbourhoods have voiced opposition, citing concerns over traffic congestion, infrastructure capacity, and the loss of green spaces.

Where the approvals process stands

The State Planning Committee ruled on 30 October 2025 that the project must be referred to the National Physical Planning Council (MPFN) under Section 22(2A) of the Town and Country Planning Act 1976, given its potential high-impact implications. A Traffic Impact Assessment (TIA) and Social Impact Assessment (SIA) were also required as part of the evaluation.

The developer subsequently applied for an exemption from the MPFN referral through PLANMalaysia, but this was rejected by the State Planning Committee on 20 February, reaffirming the referral requirement. PLANMalaysia’s federal headquarters, however, has taken a different view — stating that the project does not require MPFN referral as it constitutes a vertical residential development rather than a new township, creating a point of divergence between state and federal planning authorities.

On the technical side, the TIA has been submitted to MBPP and is currently under review, while the Road Safety Audit remains with the Public Works Department. The SIA has yet to be submitted and will be evaluated by a state panel coordinated by PLANMalaysia Penang once available.

On environmental grounds, the Department of Environment has determined that the project does not trigger a mandatory Environmental Impact Assessment under the Environmental Quality (Prescribed Activities) Order 2015, though H’ng stressed that compliance with the Environmental Quality Act 1974 remains mandatory regardless.

Assemblymen weigh in

The project has also drawn scrutiny from state assemblymen representing Sungai Dua, Seri Delima, and Penanti, who raised concerns over traffic, infrastructure adequacy, and the impact on surrounding green spaces.

With impact assessments still pending and a jurisdictional question between state and federal planning authorities unresolved, the project remains some way from a final decision. Residents opposed to the development will be watching closely.

About Maritime Signature

A 45-storey commercial development along Karpal Singh Drive. It comprises 232 office suites, several retail outlets, and sky-level facilities including a bar, restaurant, infinity pool, and gym. Situated beside the Lim Chong Eu Expressway, the project offers views of the sea and city skyline, with convenient access to George Town and Bayan Lepas.

Find out more about Maritime Signature

Eastern & Oriental Berhad (E&O) has been recognised by the Malaysia Book of Records (MBOR) for the Gurney Bridge at Andaman Island here as the ‘Widest Box Girder Bridge in Malaysia’.

E&O managing director Kok Tuck Cheong received the recognition from MBOR chief executive officer Christopher Wong during The Meg Appreciation Evening here, witnessed by Chief Minister Chow Kon Yeow and E&O executive chairman Datuk Seri Tee Eng Ho.

In a statement yesterday, E&O said the 450-metre bridge spanning the sea and measuring 40 metres wide features eight vehicular lanes as well as dedicated pedestrian walkways on both sides, linking Andaman Island to Gurney Drive and improving connectivity along Penang’s northern coastline.