This article first appeared in The Edge Malaysia Weekly on June 8, 2026 - June 14, 2026

SIX consortiums comprising local and Chinese companies have tendered for Phase 2 of the civil works package (CMC2) of the Penang light rail transit (LRT) project that includes the construction of a 3km track over the sea connecting the island and mainland in Butterworth.

Sources say among those bidding for the job, estimated at about RM4 billion, is a consortium led by Kerjaya Prospek Group Bhd (KL:KERJAYA). Kerjaya’s partners are SinoHydro Corp and Power China group.

The other five consortiums are led by Malaysian Resources Corp Bhd (KL:MRCB), MMC Engineering Bhd (MMCE), TRC Synergy Bhd (KL:TRC), YTL Group and WCT Holdings Bhd (KL:WCT).

WCT’s partners are Lion Pacific Sdn Bhd, which has completed several track works in Malaysia, and China State Construction & Engineering Co.

It is learnt that MRCB has partnered with China Railway Engineering Co (CREC) while MMCE’s partners are Samsung Construction and a Chinese company.

TRC Synergy’s principal partner is China Construction and Communications Co (CCCC) while YTL is believed to also have partnered with a unit of CREC.

Urban railway industry executives say this is the first time Kerjaya Prospek has thrown its hat into the ring for a major government civil infrastructure job.

“Kerjaya Prospek has a lot of development projects in the state. It has a lot of resources in the state and so it makes sense for it to bid for the job. TRC Synergy is another Penang-based company,” says the executive.

However, the executive points out that companies such as MRCB and MMCE have the edge because they already have operations in the Butterworth jetty and ferry terminal where the LRT will end.

The CMC2 package is the 6km stretch of the Penang LRT that will link the Macallum Street station with Penang Sentral in Butterworth. It includes a 3km sea crossing.

Phase 1 of the Penang LRT civil works package is from the reclaimed Silicon Island in Teluk Kumbar to Komtar in the heart of George Town. This RM7.9 billion project was awarded to Gamuda Bhd (KL:GAMUDA) last year.

While the CMC2 package is estimated to cost RM4 billion, this figure is expected to come down, considering the competitiveness of the tender process.

“So far MRT Corp (Malaysia Rapid Transit Corporation) has been cutting down on tender prices. This is quite evident in the systems package of the Penang LRT where it finally went for an e-bidding exercise that was held in April,” says the industry executive.

MRT Corp has been trying to reduce the cost of the Penang LRT project that is estimated to amount to RM16 billion in total. It is the biggest infrastructure spending under the current Madani government led by Prime Minister Datuk Seri Anwar Ibrahim.

Package 1 of the Penang LRT project went to Gamuda at close to RM7.9 billion after intense negotiations. Initially, Gamuda had sought RM8.3 billion but MRT Corp was looking at a price tag of RM7.6 billion.

As for the systems package, sources say after the tender closed in June last year, the price range stood at between RM2.8 billion and RM3.5 billion.

“At the e-bidding stage, the price was estimated to have come down to about RM2.9 billion,” says the industry executive.

Although the e-bidding was completed in April this year, the winner has yet to be announced.

Sources say Gamuda Bhd, a joint venture between WCT-Lion Pacific, YTL Group and MMCE are the final four that have been shortlisted for the systems job.

According to MRT Corp, the tender offers are still being evaluated.

“Following the completion of the live e-bidding exercise, MRT Corp is undertaking validation of the bidders’ new detailed cost breakdowns and bills of quantities,” states MRT Corp in a written response to The Edge.

As for the CMC2 package, MRT Corp in its tender document has outlined that only companies that have completed civil and railway-related works worth RM500 million are qualified to bid for the job. Another requirement is that the companies need to have completed at least one water body-crossing viaduct incorporating a cable-stayed bridge with a main navigational span of not less than 300m.

“This is part of the requirements because the work involves designing and constructing a link across the sea that is estimated at 3km. There also has to be some adjustments to the middle span for safety measures,” says the industry executive.

MRT Corp dismisses the notion that Phase 2 of the Penang LRT project, known as the Penang Mutiara Line, could be delayed due to the present challenging economic conditions.

It stresses that “there is no change in the project plan at this moment” when asked if the implementation of Phase 2 could be delayed to beyond 2032.

Speculation of a delay came about after a notification from MRT Corp to the bidders a few weeks ago pushing the completion date of the entire project to April 2032.

MRT Corp emphasises that the completion date is still by December 2031.

“There are provisions in the contract terms that facilitate early implementation of work should the need to do so arises”, it adds.

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