The battle for Penang’s Mutiara Line systems package is shaping up to be one of Malaysia’s most hotly contested transport contracts, with intense lobbying and fierce competition among seven consortia vying for a project that carries significant strategic weight in the country’s rail industry.

MRT Corp has opted for a reverse e-bidding exercise to determine the most competitive price for the systems package, which covers signalling, rolling stock, and track works on a design-and-build basis. The decision follows months of refinements since the tender was first called in December 2024, with multiple deadline extensions and addenda, including a notable revision in August 2025 that changed the rolling stock configuration from four-car to three-car train sets.

The field of bidders is largely homegrown, with local heavyweights Gamuda Bhd, MMC Group, YTL Group, Malaysian Resources Corp Bhd (MRCB), a WCT Holdings-Lion Pacific joint venture, and a Dhaya Maju Infrastructure Asia-Berjaya Rail partnership all in the running. A seventh consortium has also submitted a bid. Most contenders have partnered with Chinese firms, with MMC standing apart through tie-ups with South Korea’s Hyundai Rotem for rolling stock and Japan’s Hitachi for signalling.

On pricing, the WCT-Lion Pacific JV submitted the lowest preliminary bid at RM2.7 billion, with several other bidders reportedly also coming in below RM3 billion. However, the reverse e-bidding format means the lowest number alone won’t guarantee a win as MRT Corp will weigh execution capability alongside price.

CIMB Research highlighted Gamuda and MRCB as strong contenders, given their track records as lead contractors on the Klang Valley’s first two MRT lines and LRT 3, respectively. Gamuda’s international portfolio, spanning tunnelling and metro projects in Taiwan, Singapore, and Australia, further bolsters its credentials.

A fund manager cautioned that while reverse bidding could compress margins, it won’t necessarily make the project unviable. “Not all companies can last in such an exercise, especially if you can’t work on lower margins,” the fund manager noted, adding that discipline among bidders and MRT Corp’s priorities will shape the final outcome.

Beyond the contract itself, industry observers see the Penang LRT systems package as a strategic foothold. Winning it signals not just financial gain, but a firm stake in Malaysia’s evolving rail ecosystem, making the prize well worth the fight.

Property owners within the George Town UNESCO World Heritage Site will soon enjoy a faster and more streamlined pathway to convert residential properties into shophouses.

The Penang Island City Council (MBPP) has approved a new guideline, effective May 1, removing the need for planning permission (kebenaran merancang) for selected change-of-use applications within the heritage zone. Instead, owners are only required to submit building plans, a move expected to cut the approval process by six to nine months.

According to MBPP mayor Rajendran P. Anthony, the revision is aimed at facilitating property owners while reducing procedural delays and compliance costs. The guideline applies to both pre-war and post-war buildings that contribute to the heritage value of George Town, including those of Early Penang and Straits Eclectic architectural styles.

Under the new rules, terrace houses may be converted into shophouses, with commercial use restricted to the ground floor and upper levels retained for residential purposes. While minor additions are allowed, these must remain within the existing building footprint, with no increase in building height permitted in order to preserve the historical streetscape.

Parking requirements remain in place, although developers can opt to pay a contribution in lieu, set at RM25,000 per car bay and RM2,500 per motorcycle bay. A separate conversion charge of RM100 per sq m will also apply for residential-to-commercial use.

The revised guideline replaces previous provisions, balancing improved efficiency with continued safeguards to protect the site’s Outstanding Universal Value.

Separately, MBPP also received the UNESCO Asia-Pacific Award for Cultural Heritage Conservation for the Esplanade Seawall and Promenade project, recognised under the “New Design in Heritage Contexts” category.

About G’Vinton

A serviced residence development by GSD Land in George Town. The project spans approximately 1 acre and is strategically positioned between Ambank and the NSTP building, offering convenient access to KOMTAR and Gurney Drive. The development will include 336 serviced suites, a nine-level car parking podium, and four shop offices on the ground floor. Recreational facilities will be located on level 39.

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An artist’s impressions of Beach Street after the project is completed

Beach Street in George Town is set to undergo a major transformation, with a climate-adaptive upgrade aimed at enhancing walkability, reducing urban heat and improving the overall streetscape within the heritage core zone. Long regarded as one of the city’s most historic commercial corridors, the area will be reconfigured to better balance modern urban needs with heritage preservation.

The RM24.7 million project is part of the Nature-Based Climate Adaptation Programme (PNBCAP), jointly implemented by the Penang Island City Council with funding support from the World Bank Adaptation Fund. Covering a 1.76km loop that includes Beach Street, Church Street Ghaut and Victoria Street, the project commenced in September last year and is scheduled for completion by December. Progress has reached approximately 30% as of late March, with works carried out in phases to minimise disruption to traffic and business activities.

A key focus of the initiative is to mitigate the urban heat island effect. Plans include the planting of more than 900 trees, alongside the introduction of green corridors, pocket parks and permeable surfaces to improve drainage and reduce surface temperatures. These measures are expected to enhance thermal comfort while contributing to better air quality and flood management within the heritage zone.

The project also places strong emphasis on pedestrian-friendly infrastructure. Wider walkways, shaded paths and barrier-free features such as ramps, tactile paving and seating areas will be incorporated to improve accessibility for all users. At the same time, roadside parking will be reduced from 293 bays to about 150, with selected spaces converted into landscaped areas.

While initial concerns were raised about potential impacts on the street’s historic character, authorities have indicated that strict safeguards are in place to protect key heritage assets, including the Queen Victoria Memorial Clock Tower. The existing roundabout in front of the landmark will be transformed into a pocket park, in line with conservation guidelines under the George Town UNESCO World Heritage Site Special Area Plan.

In addition to landscaping improvements, sustainability features such as solar-powered street lighting and environmental sensors will be introduced to monitor temperature, humidity and air quality. These measures will allow for post-completion evaluation of the project’s effectiveness and inform future climate-adaptive initiatives.

From a broader perspective, the upgrade is expected to support local businesses by improving accessibility, enhancing the streetscape and encouraging greater pedestrian activity. As the project progresses, it is also seen as a potential model for similar urban interventions across Penang, reinforcing efforts to create a more resilient, liveable and environmentally responsive city.

(Image: The Star)

About Taman Simpang Empat

A low-density residential enclave within the SA Central freehold mixed-development by GUH Development Sdn. Bhd., located in Simpang Ampat. Comprising 61 units of 2-storey terrace homes with built-up areas starting from approximately 1,776 sq.ft., the development is designed to cater to modern family living. Strategically connected to major roads and the North–South Highways, and surrounded by everyday amenities, schools and commercial hubs, Taman Simpang Empat offers a balanced lifestyle anchored by comfort, connectivity and long-term value within the upcoming SA Central township.

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