Penang, 30 January 2026 – An ambitious masterplan for Eastern & Oriental Berhad’s Andaman Island project, with an estimated gross development value (GDV) of about RM60 billion, is progressing beyond residential housing into a broader lifestyle and business hub that could reshape Penang’s integrated urban landscape.
Originally conceived as a reclaimed island off Gurney Drive with luxury residences and premium homes, the project is now moving into its next phase of development. The first residents are due to move in this year as part of the initial residential handovers, and the developer is lining up commercial and lifestyle components to complement the housing estate.
From Homes to Mixed-Use Urban Hub
Andaman Island, a man-made islet connected to Penang Island by a new second bridge, was envisioned as a 30-year masterplan combining living spaces with future-ready commercial and business precincts. Its strategic location beside one of Penang’s most iconic waterfront promenades positions the development as a new focal point for both locals and visitors alike.
The concept reflects a shift from purely residential development toward integrated community planning that blends lifestyle, retail, office, hospitality and leisure elements on the island. While homes remain central, E&O is preparing to introduce complementary commercial components to create a more dynamic mixed-use environment that supports economic activity and urban vibrancy.
Strategic Importance for Penang’s Property Landscape
The Andaman project spans hundreds of hectares and is expected to evolve over multiple decades, with future phases adding significant value through retail, office and hospitality hubs. By moving beyond traditional residential development, the initiative is positioned to attract a broader base of investors and occupants, while connecting seamlessly with Penang’s established tourist and business infrastructure.
Development of this scale underscores Penang’s continued appeal as a property investment destination and its growing role in Malaysia’s property and economic landscape, benefitting from strong tourism, export-led growth and a stable business environment.
