This article first appeared in The Edge Malaysia Weekly on April 13, 2026 - April 19, 2026

WHEN the tender for the systems package of the Penang Light Rail Transit (LRT) project was called in December 2024, many in the industry expected a final decision to be made within a year. But after 16 months, Malaysia Rapid Transit Corporation (MRT Corp) has yet to award the project.

The tender for the systems package, which comprises signalling, rolling stock and track works and covers 29.5km, was initially slated to close on April 14 last year. It eventually closed in June, with seven consortiums participating.

Among the requirements were that tenderers must come up with a proposal to incorporate a higher degree of local content in the rolling stock and to establish a local assembly plant for the train car sets.

In August, the tenderers were told to incorporate a proposal for a three-car train set instead of a four-car train set, to cater for the eventuality of low passenger traffic in the initial stages of the operations. The tender finally closed last September.

When the tender closed, a consortium led by Lion Pacific Sdn Bhd and WCT Holdings Bhd (KL:WCT) had the lowest price of about RM2.7 billion. The other contenders were consortiums led by Gamuda Bhd (KL:GAMUDA), YTL Group, MMC Group, Dhaya Maju Infrastructure Asia Sdn Bhd, Berjaya Rail Sdn Bhd and Malaysian Resources Corp Bhd (KL:MRCB).

However, it is learnt that the other consortiums also dropped the price to under RM3 billion in the following months, upon further clarifications from MRT Corp.

Sources say that MRT Corp had already shortlisted the names to three earlier this year: Gamuda, YTL Group and MMC Group. Even so, the dark horse is said to be the WCT-Lion Pacific joint venture.

However, MRT Corp last week called for an e-bidding exercise, which came as a surprise to the tenderers. The bidders claimed MRT Corp did not indicate there would be an e-bidding exercise as part of the evaluation when the tender briefing was done more than a year ago.

According to MRT Corp, the reason was to ensure the most competitive pricing. It said the tender exercise was in the final stages and denied that it was calling for the e-bidding exercise because it was unable to make a decision.

Below are MRT Corp’s responses to questions from The Edge on the issue.

The Edge: What is the rationale and logic for the e-bidding exercise?

MRT Corp: We are carrying out a reverse e-bidding exercise for us to establish the most competitive bid price for the systems package.

Is it true that MRT Corp had already done its final evaluation, and recommendations were already completed in January this year to select the winning tenderer?

We are currently at the final stage of evaluation.

Was the clause for e-bidding part of the tender document when it was issued?

The tender documents incorporate clauses that allow MRT Corp to adopt appropriate evaluation methods to achieve the best overall outcome.

There were seven tenderers who had submitted their bids when the tenders closed. Is it true that all seven companies are invited to the e-bidding exercise?

All bidders are invited to the e-bidding exercise.

There is a perception that MRT Corp could not make a decision on the tender package for the systems, hence the delays and reason for the e-bidding. What are your views on this?

We are clear on our requirements and it is now a matter of getting the most competitive bid price. 

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