Kuala Lumpur, 27 August 2025 – The budget for the Penang Light Rail Transit (LRT) Mutiara Line has surged by approximately 68%, now estimated at RM16–17 billion, compared to the RM10 billion projection announced by Prime Minister Anwar Ibrahim in Budget 2024.
Transport Minister Anthony Loke clarified in Parliament that the earlier figure was provisional and did not reflect detailed engineering and value management analyses. According to project developer MRT Corp, the revised cap of RM16.8 billion is driven by global supply‑chain inflation, surging land costs, and an expanded project scope—particularly the addition of a cross‑strait link to Seberang Perai.
MRT Corp added that the new estimate does not indicate unchecked budget escalation, and emphasized that ongoing tenders and cost‑control efforts, such as a value‑management exercise that trimmed a major civil contract from RM8.31 billion to RM7.93 billion, aim to temper expenses.
However, critics argue the spike is deeply concerning. MCA’s Penang chief Tan Teik Cheng insisted the public deserves “a clear, honest, and comprehensive explanation,” citing risks to fiscal sustainability and calling for greater transparency in procurement practices.
Observers warn that the cost uptick presents a significant political challenge for Prime Minister Anwar and the Pakatan Harapan coalition—especially given past opposition to opaque mega-project tenders and infrastructure privatisation.
