Kuala Lumpur, September 4, 2025 — AmBank Group has approved RM780 million in financing for Tanjung Pinang Development Sdn Bhd (TPD), a wholly owned subsidiary of Eastern & Oriental Berhad (E&O), to support the ongoing development of Andaman Island, Penang’s largest man-made island project. The funding will cover land reclamation and critical infrastructure works for Phase 2, targeted for completion in 2028.
The 30-year master plan for Andaman Island carries a staggering gross development value (GDV) of RM70 billion, designed to transform Penang’s northern seafront into a vibrant hub for residential, commercial, and tourism activities.
A Vision of Integrated Growth
Andaman Island, reclaimed off the coast of Tanjung Tokong, has already seen significant progress with the launch of several premium residential projects including The Meg, Arica, Fera, Senna, The Lume, and Maris. Phases 3 and 4 of the Fera and Senna developments are set to launch progressively, while upcoming projects include a commercial belt with a mall, offices, branded residences, serviced apartments, educational facilities, and a luxury hotel.
The opening of the Gurney Bridge by end-2025 is expected to significantly boost accessibility, connecting the island directly to George Town and cementing its position as a new lifestyle and business hub.
Christopher Yap, Managing Director of Business Banking at AmBank, said the financing reflects both confidence in the project’s long-term prospects and the bank’s commitment to sustainable development:
“Andaman Island is more than a property project; it is a blueprint for urban regeneration, green innovation, and regional growth. By supporting E&O, we are not only financing infrastructure, but also contributing to a transformative development that will shape Penang’s future.”
Commitment to Sustainability
The project has earned the GreenRE Platinum Provisional Certification, underscoring its integration of eco-conscious practices such as rainwater harvesting, renewable energy solutions, and green open spaces. This accreditation ensures that all buildings on the island are eligible for green building recognition, positioning Andaman as a model of environmentally responsible reclamation and urban planning.
An E&O spokesperson highlighted that sustainability is central to the development:
“Every stage of Andaman’s design prioritises liveability and environmental care. From energy efficiency to integrated green spaces, we are building for the future while respecting Penang’s heritage and ecosystem.”
Strengthening Penang’s Economic Footprint
For Penang, the Andaman project represents not only a landmark in urban design but also a significant economic catalyst. By attracting new residents, businesses, and tourists, the project is expected to generate thousands of jobs, expand the state’s tax base, and reinforce its status as one of Malaysia’s fastest-growing states.
Market observers note that E&O’s strong track record in luxury developments lends credibility to the project. With AmBank’s financial backing, the company is better positioned to execute its long-term vision despite broader challenges in the property sector.
