NPE 2 Highway Extension to Boost KL Connectivity and Property Growth

IJM group

NPE 2 Extension Set to Transform Kuala Lumpur’s Mobility and Property Landscape

Kuala Lumpur’s infrastructure network is set for a major upgrade with the launch of the RM1.7 billion New Pantai Expressway Extension (NPE 2) — a transformative project that will significantly enhance connectivity across the Pantai Dalam–Bangsar–Mahameru corridor while driving new waves of urban growth and property development.

The project, covering 6.4 kilometres along the main alignment and 15 kilometres in total including ramps and interchanges, will link the Pantai Dalam Toll Plaza to Jalan Istana. Once operational in 2029, it is expected to reshape how people and goods move through Kuala Lumpur’s southern gateway.

Officiated by Works Minister Datuk Seri Alexander Nanta Linggi, the groundbreaking ceremony at the Pantai Dalam Toll Plaza marked a key milestone under the Kuala Lumpur Traffic Master Plan 2040 — a blueprint designed to create a more efficient, sustainable, and integrated urban mobility system for the capital.

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Reducing Travel Time and Boosting Urban Connectivity

According to Minister Nanta, the NPE 2 highway will deliver significant time savings for daily commuters.

“Once completed in 48 months, motorists could save up to 25 minutes when travelling from Bangsar or Mid Valley to Subang Jaya,” he said.

This reduction in travel time stems from improved road service levels, reduced congestion at bottlenecks, and direct connectivity to major highways such as the Federal Highway, SPRINT Expressway, and New Pantai Expressway (NPE) mainline.

The extension will also provide better access to major urban zones — including Bangsar South, Mid Valley City, Pantai Sentral Park, and Lembah Pantai — easing commuter pressure and improving logistics flow across Kuala Lumpur’s densely developed core.


A Catalyst for Property and Economic Growth

Beyond transportation efficiency, the NPE 2 project is expected to serve as a powerful catalyst for property development, business expansion, and local economic growth.

“The highway is expected to boost local economic growth in Pantai Dalam, Bangsar, and Lembah Pantai, while spurring new opportunities in housing, commerce, and services,” said Nanta.

Experience from previous infrastructure upgrades — such as the DUKE Highway, MRT Lines, and Setiawangsa–Pantai Expressway (SPE) — has shown that new transport links often trigger property value appreciation in surrounding areas.

For Kuala Lumpur, the NPE 2 will enhance accessibility to key southern districts, improving the attractiveness of residential and mixed-use developments in the Pantai Dalam, Bangsar South, and Old Klang Road corridors.

These areas have already become hotspots for KL property investors seeking affordable yet connected locations, with projects such as Kita @ Cybersouth, Pantai Sentral Park, and Southlink Lifestyle Apartments demonstrating growing demand for lifestyle-driven, well-connected urban living.


Fully Private-Funded and Public-Private Partnership Success

The NPE 2 is being developed and fully funded by New Pantai Expressway Sdn Bhd, a wholly owned subsidiary of IJM Corporation Bhd (KL:IJM). This model ensures zero financial burden on the government while demonstrating how private-sector participation can accelerate infrastructure delivery.

“This is a prime example of a successful public-private partnership in sustainable infrastructure development,” Nanta said.

Such arrangements highlight Malaysia’s evolving infrastructure ecosystem — where large-scale projects are increasingly supported by innovative financing, technical expertise, and long-term maintenance commitments from the private sector.

IJM Corporation, one of Malaysia’s most established construction and property groups, brings decades of experience in highway engineering, urban planning, and smart mobility solutions. Its involvement strengthens the project’s credibility and ensures timely, quality execution.


Integrating Technology: The Future of Toll Collection

Alongside physical infrastructure upgrades, the Ministry of Works is also preparing for Malaysia’s digital toll transformation.

Nanta confirmed that the government had received interest from six companies bidding to implement the Multi-Lane Free Flow (MLFF) toll collection system — a technology that eliminates toll barriers, enabling seamless, cashless travel.

“The MLFF system will be implemented on a business-to-business basis, allowing service providers to engage directly with highway concessionaires,” he explained.

The new system will employ artificial intelligence (AI) and automated vehicle recognition technology to ensure safer, faster, and more efficient journeys.

This innovation marks another step toward Malaysia’s smart mobility vision, positioning the country alongside advanced nations already using digital toll networks. For property investors, such improvements translate into better accessibility, reduced commuting stress, and higher urban desirability — all factors that sustain long-term property value.


Sustainability and Inclusive Development

The NPE 2’s alignment through urbanised and mixed-use areas has been carefully planned to balance connectivity with community well-being.

Environmental impact assessments and engineering measures are being undertaken to minimise displacement, noise, and pollution, while ensuring that adjoining neighbourhoods benefit from improved access and enhanced road safety.

The project also supports Kuala Lumpur’s broader sustainability agenda under the Kuala Lumpur Structure Plan 2040, which seeks to promote compact, transit-oriented, and eco-friendly urban development.

For investors and developers, this integration of sustainable transport planning and real estate growth underscores Kuala Lumpur’s evolution into a future-ready city — where infrastructure and property development go hand in hand.


Strengthening the Southern Corridor: From Pantai Dalam to Subang Jaya

With the NPE 2 set for completion in 2029, Kuala Lumpur’s southern corridor is poised to undergo a new phase of transformation. The improved connectivity between Mid Valley, Bangsar South, and Subang Jaya will not only benefit daily commuters but also enhance commercial activity, encourage business relocations, and stimulate housing demand in adjacent zones.

From a macroeconomic perspective, such infrastructure upgrades directly contribute to Malaysia’s Madani Economy Framework, which emphasises equitable urban growth, productivity gains, and sustainable investments.

As Kuala Lumpur strengthens its role as Malaysia’s economic and property hub, developments like NPE 2 reaffirm investor confidence in the city’s continued growth and livability.


Conclusion: Driving the Future of Mobility and Real Estate

The RM1.7 billion NPE 2 extension is more than a road project — it’s a symbol of Malaysia’s vision for a connected, efficient, and sustainable urban future. By reducing travel times, improving mobility, and unlocking new development corridors, it will play a crucial role in shaping the next decade of KL property growth.

For investors, homeowners, and developers, the message is clear: infrastructure remains the heartbeat of real estate value. As Kuala Lumpur’s highways and transit systems evolve, so too will the opportunities to live, work, and invest in Malaysia’s most vibrant metropolitan region.

Discover the latest developments driving property growth across Kuala Lumpur at klproperty.cc — your trusted gateway to Malaysia’s premier real estate insights.