MRT Corp has awarded a RM2.69 billion contract to a joint venture comprising China Communications Construction Company (CCCC), TRC Construction and Ufuk Semarak for the construction of the Penang LRT Mutiara Line’s cross-sea extension connecting Penang Island to Seberang Perai. The Civil Main Contract 2 (CMC2) package covers the design and construction of a 5.5km alignment from Macallum on the island to Penang Sentral on the mainland, including a 3.05km bridge across the Penang Strait.

The extension will establish a direct rail connection between Penang Island and the mainland, with Penang Sentral serving as an important interchange hub for passengers travelling on the LRT, KTM train services, ferries and buses. According to MRT Corp, the journey between Komtar and Penang Sentral is expected to take approximately eight minutes, providing an alternative cross-strait travel option and potentially reducing reliance on road transport.

The cross-sea bridge will also incorporate specially designed sections to allow vessels to pass through to the ports of Prai and Butterworth. MRT Corp said it would work with the relevant authorities to minimise disruptions to motorists and ensure public safety throughout the construction period.

Construction of the Macallum–Penang Sentral alignment is scheduled to commence in the third quarter of 2027, following the appointment of the main contractor. Preliminary works will be carried out before major construction activities, including the building of the marine bridge. The section is targeted for completion by December 2031, in tandem with the island alignment connecting Silicon Island to Komtar.

The alignment will have two main stations at Macallum and Penang Sentral, while Bagan Luar has been designated as a provisional station to accommodate possible future expansion. The proposed station would provide an opportunity to extend the rail network further into Seberang Perai should the need arise.

The overall Mutiara Line will span approximately 29.67km, comprising 20 stations and two provisional stations. Once completed, it will become the first integrated metro transit system in the northern region, connecting key areas of Penang Island with the mainland. The project is expected to improve public transport accessibility, strengthen connectivity between the two sides of the state and help ease traffic congestion. MRT Corp reported that construction of the overall line was 16% complete as of November 2026, with passenger operations targeted to begin in December 2031.

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The proposed Seaside Pocket Park in Tanjong Bungah will proceed, with the developer agreeing to incorporate almost all requests raised by residents into the latest park design, according to Penang state executive councillor Zairil Khir Johari.

Zairil, who oversees Infrastructure, Transport and Digital, said the agreement was reached following a series of discussions involving the state government, developer, Penang Island City Council (MBPP), technical departments and residents’ representatives since December 2025.

Following the latest meeting on 27 October 2026, the developer agreed to include several key requests, including two public access points, adequate parking facilities and the planting of native coastal vegetation.

However, one outstanding issue has yet to be resolved. Zairil said the matter has been referred to the Appeals Board, with the next hearing scheduled for 19 November 2026.

Another meeting has also been arranged for 16 November 2026, convened by the State Legal Adviser’s Office. It will involve the developer, the Management Corporation of One Tanjong, PlanMalaysia, MBPP and the Department of Irrigation and Drainage (JPS).

Zairil said the state government respects residents’ right to voice their concerns and remains committed to listening to the community throughout the planning process.

He added that the proposed public park is intended to benefit the wider Tanjong Bungah community and will be developed without any cost to taxpayers.

The final design will still be subject to safety and environmental assessments by the relevant authorities before the park can be opened to the public.

The Seaside Pocket Park is being developed by Lone Pine Residence Sdn. Bhd. on state land adjacent to Lot 4658, as part of the conditions attached to its proposed five-storey wellness suites development.

The park was initially planned to feature recreational facilities, including jogging tracks, a children’s playground, fitness areas, resting spaces and a seaside promenade.

About Embun Hills

69.2-acre freehold mixed development by Paramount Property, located along Jalan Kulim in Machang Bubok, Bukit Mertajam, approximately 3km from the Penang-Kedah border. The development comprises 497 gated and guarded strata-titled residential units, 69 non-gated homes with individual titles, and 30 double-storey commercial shop offices.

(Photo taken in Oct 2026)

Find out more about Embun Hills

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The Penang state government has no specific plans to develop its land on Pulau Jerejak for now, although several development proposals from private developers have been submitted for the island. Chief Minister Chow Kon Yeow said the proposals involve mixed-use developments, alongside the provision of infrastructure and recreational facilities.

He said any proposed development would remain subject to the necessary planning approvals, land matters, and compliance with technical and legal requirements set by the relevant authorities. Chow was responding to a question from Pulau Tikus assemblyman Joshua Woo Sze Zeng during the Penang State Legislative Assembly sitting on plans for the island’s future development.

Meanwhile, Chow disclosed that a Temporary Occupation Licence (TOL) for the construction site of a proposed bridge linking Persiaran Bayan Indah, near Queensbay, to Pulau Jerejak was approved in 2023. Covering an area of 2.02 acres, the licence is renewed annually until 2026, with an annual fee of RM12,300.

The state government has not provided further details on the private development proposals or indicated when they may proceed.

The Penang Island City Council (MBPP) is working on extending its regulations for tourist accommodation premises (TIP) to cover the George Town UNESCO World Heritage Site, as the state looks to better manage the growing short-term rental industry. State Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the move was agreed upon during a meeting involving MBPP, PLANMalaysia and George Town World Heritage Incorporated (GTWHI) on Sept 28.

The council is now drawing up specific guidelines, including the proportion of buildings or premises that can be used for tourist accommodation within the heritage area. The guidelines will consider existing land use, zoning, planning policies and heritage conservation needs, while ensuring that George Town retains its character as a living heritage site.

The move comes alongside revisions to Penang’s Private Short-term Accommodation (Local Authorities of Penang) By-laws 2026, which will take effect on Jan 1, 2027. Under the revised fee structure, the annual licence fee will be reduced from RM1,000 to RM500 per unit. The tourist accommodation premises fee will also be adjusted according to the number of rooms, ranging from RM400 for units with one room to RM1,800 for premises with five to 10 rooms. The maximum permitted room count has also been increased from five to 10, subject to local authority requirements.

The changes have been welcomed by the Penang Malaysia Homestay/Short-Stay Operators Association, although the group is hoping for further flexibility. Its chairman, Lydia Tan, said the association would like to see a single licence covering up to 10 units, rather than requiring operators to apply for separate licences for each property. She said this would help simplify the application process and reduce administrative costs for operators. The association has also proposed setting up a working committee with the state government to discuss industry-related matters.

The latest developments reflect the state’s efforts to strike a balance between supporting the short-term accommodation industry, addressing concerns from local residents and preserving George Town’s heritage character.