Butterworth, Penang, 8 November 2025 – Prime Minister Anwar Ibrahim has responded to criticisms over the rising cost of the Mutiara Line LRT in Penang, describing the higher budget as justified by the decision to extend the project across the channel to the mainland. He dismissed opposition concerns and urged a broader focus on long-term connectivity gains.
Speaking at the groundbreaking ceremony for the Juru-Sungai Dua traffic-dispersal project near Seberang Jaya, Anwar said:
“When informed that the LRT project was limited only to Penang Island, I, as a Penangite born and raised in Seberang Perai, insisted that the line must extend across the sea to the mainland.”
He explained that the original alignment plan was limited, but the expanded scope, linking to Penang Sentral in Seberang Perai and incorporating the island-to-mainland connection, was what drove the cost increase.
Key Project Details
- The Mutiara Line LRT is slated to run approximately 29.5 km with 21 stations, connecting key nodes from George Town’s Komtar hub to the mainland’s Penang Sentral.
- Project cost has been revised to around RM16.8 billion, up significantly from earlier estimates (~RM10 billion). The increase reflects the broader alignment, land costs, inflation and bridging the channel.
Implications and Considerations
- Anwar’s defence suggests the government views the Mutiara Line as a strategic investment in Penang’s regional connectivity, not merely a local transit upgrade.
- The extended route, covering both the island and mainland, aims to link industrial zones, transport hubs and residential areas across the Straits of Penang, potentially easing congestion and improving mobility.
- Critics remain concerned about fiscal discipline, given the large budget escalation, and will likely continue scrutinising tender processes, value-for-money and timeline execution.
What to Watch
- Progress of the project’s key contract awards and cost management, given the expanded scope.
- Integration of the LRT with other transport modes (buses, ferry, rail) at Penang Sentral and Komtar to maximise ridership and utility.
- Impact on Penang’s economy: job creation, property development along the corridor, and reduction in travel-time and congestion for commuters.
- The broader message: whether the federal government continues to fund large-scale infrastructure in states like Penang as part of national development strategy.
