Last updated on August 23, 2025
GEORGE TOWN: Bank Pembangunan Malaysia Bhd (BPMB) and Hartasuma Ropeways Sdn Bhd, a wholly owned special purpose vehicle (SPV) of Hartasuma Sdn Bhd, have formalised a RM367.2 million financing deal for the Penang Hill cable car project.
The project aims to improve accessibility to Penang Hill, enhance connectivity to the Penang Hill Biosphere Reserve, elevate visitor experiences, and support Penang’s long-term tourism growth. The financing marks a key step toward full-scale construction.
As the long-term concessionaire, Hartasuma Ropeways will develop, finance, operate, and maintain the system, which will complement the existing funicular railway. The cable car will carry up to 1,400 passengers per hour in each direction, offering a 10-minute trip from the Penang Botanical Gardens to the summit — a faster, scenic alternative during peak periods and maintenance shutdowns.
BPMB group corporate and investment banking managing director Mohamed Nazri Omar said the financing reflects BPMB’s commitment to sustainable tourism infrastructure that delivers long-term social and economic benefits. This is also BPMB’s first blended finance initiative, combining debt financing and equity investment through BPMB Dana Sdn Bhd, with additional support from the National Energy Transition Facility (NETF). The RM30 million equity portion, structured via Musharakah, supports energy efficiency, renewable energy, and green mobility.
Hartasuma executive director Tan Sri Ravindran Menon described the project as more than just a cable car, but a legacy that will create lasting memories. He said securing the financing underscores confidence in the project’s vision and long-term value, with the target to deliver a world-class experience by early 2027.
Penang Chief Minister Chow Kon Yeow said the project is vital to managing growing visitor numbers, with funicular ridership surpassing one million this year. The cable car will complement, not replace, the funicular, reducing congestion while embedding environmental stewardship through sustainable construction, solar integration, and ecological safeguards.
Beyond tourism, the initiative is expected to create nearly 400 jobs, provide youth training programmes, and ensure accessibility for people with disabilities. The project is on track for completion by December next year, followed by a three-month trial phase before opening to the public.
Prime Minister Datuk Seri Anwar Ibrahim officiated the launch in June last year, marking a milestone in Penang’s efforts to strengthen tourism infrastructure and position Penang Hill as a must-visit heritage landmark.
