The revised RM16.8 billion ceiling for the LRT Mutiara Line project is not an uncontrolled escalation but an adjustment to reflect market conditions, Malaysia Rapid Transit Corporation Sdn Bhd (MRT Corp) said.
The company explained the revision was based on 2024 market data, citing global supply chain inflation, higher land values and additional works at Macallum and Silicon Island.
“In December 2024, the Federal Government approved a project budget ceiling of RM16.8 billion and MRT Corp has been mandated to keep the cost lower. The actual project cost would depend on results of ongoing and upcoming open tender exercises,” it said in a statement.
In January this year, MRT Corp awarded a conditional RM8.31 billion Civil Main Contract Package 1 to SRS Consortium Sdn Bhd. Following a value management exercise in April, the contract sum was reduced to RM7.93 billion.
The company said the ceiling also covers land acquisition, now estimated at RM2 billion, while the remaining RM6.8 billion is allocated for Civil Main Contract Package 2, the Sungai Nibong depot, the systems turnkey contract, and consultancy and project management costs.
The Mutiara Line will span 29.5 km with 21 stations from Silicon Island to Komtar and across to Penang Sentral in Butterworth. Its first phase, a 24 km stretch from Komtar to Island A, will feature 19 stations and supporting works.
MRT Corp noted the original estimated cost for the Penang LRT Bayan Lepas Project in 2016 was RM10 billion for the alignment from Silicon Island to Komtar. After the federal government took over the project in early 2024, the alignment was extended to Penang Sentral, raising costs by RM3 billion to RM13 billion.
Transport Minister Anthony Loke Siew Fook has said the project will be funded upfront from the Federal Government’s development expenditure budget to avoid future liabilities.
