The much-anticipated Penang Light Rail Transit (LRT) project is finally set to break ground on January 11, 2025, at Bandar Sri Pinang, according to a report from CIMB Securities.
Gamuda Leads the Pack
Gamuda Bhd has emerged as a top beneficiary of the Mutiara Line, which is the first segment of the Penang LRT project. Its SRS Consortium was awarded the civil infrastructure works package in March 2024 through a single-sourcing request for proposal.
CIMB Securities estimates that Gamuda’s 60% share of the RM8 billion contract will boost its outstanding order book by 72%, raising it to RM11.5 billion for the financial year 2025. This positions Gamuda as a key player not just in construction but in driving Penang’s infrastructural growth.
Impacts on the Construction and Steel Industries
The predominantly elevated LRT structure offers significant opportunities for specialized construction and steel companies.
Econpile Holdings Bhd
Econpile, a major player in piling and foundation works, is expected to gain from the elevated design of the Mutiara Line, which demands robust and specialized structural support.
Ann Joo Resources Bhd
Located just 6km from Penang Sentral and a short drive from Penang Port, Ann Joo Resources is strategically positioned to meet the project’s steel requirements efficiently. Its proximity to the project site ensures lower transportation costs and faster delivery times, making it a strong candidate for fulfilling the project’s steel demand.
Enhancing Regional Connectivity
The Penang LRT project aims to revolutionize transportation across Penang Island and Seberang Perai by connecting major hubs with seamless transit options.
Boosting Penang Sentral
The cross-channel link is expected to bolster development opportunities for MRCB’s Penang Sentral, a key transportation hub for northern Peninsular Malaysia. Improved connectivity will make Penang Sentral a pivotal transit point for passengers and goods.
The Light Waterfront Development
IJM Corporation Bhd’s The Light Waterfront is set to benefit from enhanced accessibility with the inclusion of two proposed LRT stations on either side of the project. This integration will likely increase the appeal of the waterfront as a premium destination for both residents and businesses.
Economic Ripple Effects
The Mutiara Line, part of the larger Penang Transport Master Plan (PTMP), is more than just an infrastructure project. It represents a significant economic driver for Penang, with potential ripple effects across:
- Job creation: A large-scale infrastructure project will create jobs in construction, engineering, and related industries.
- Urban development: Improved connectivity will attract new residential and commercial developments along the LRT corridor.
- Tourism: A modern public transportation system will enhance Penang’s appeal as a tourist destination.
Future-Proofing Penang’s Growth
The Penang LRT is part of a long-term vision to create a sustainable, efficient, and interconnected public transport network. As the project moves forward, companies like Gamuda, IJM, Ann Joo, and Econpile will play crucial roles in transforming Penang into a transportation hub and economic powerhouse.
