The new ceiling cost of RM16.8 billion for the Light Rail Transit (LRT) Mutiara Line project has been set in response to current market conditions and additional project scope, including an extension of the line to Penang Sentral in Butterworth. Chief Minister Chow Kon Yeow said the revised ceiling also reflects higher costs related to land acquisition.
“The new cost for the Mutiara Line cannot be compared to the initial announcement two years ago because the project scope has been expanded. Once the project was taken over by Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the line was extended to Butterworth, which naturally involves additional costs,” he told reporters after launching the new Icon Sunsuria medical facility and Island Hospital Cancer Centre today.
However, Chow clarified that the final project cost will only be known after all construction packages are awarded.
“I believe this ceiling is merely indicative for now, as only Package 1, which involves civil works from Silicon Island to Komtar, has been tendered. Package 2, which covers civil works and systems for the extension from Macallum to Penang Sentral, has yet to be offered. The actual cost will only be clear after all contracts are awarded,” he said.
He added that land acquisition costs for state government and local authority-owned properties under the project would be offered at earlier valuation rates, not current market prices.
Transport Minister Anthony Loke Siew Fook had previously announced that the budget ceiling for the Mutiara Line was revised from the earlier RM10 billion figure tabled by the Prime Minister in Budget 2024.
Loke explained that the RM10 billion figure was only a preliminary estimate that did not include value management and cost assessment exercises. Such structured approaches are standard for large-scale infrastructure projects to ensure optimum value for stakeholders.
He also stressed that the RM16.8 billion ceiling is not the final project cost. “The ceiling is set higher than the actual need, but we will aim to reduce costs through open tender,” Loke told Parliament earlier this week during the winding-up of the 13th Malaysia Plan debate.
As it stands, Package 1 of the Mutiara Line covers a 24-kilometre stretch between Komtar and Silicon Island, comprising 19 stations and supporting works.
Upon completion, the Mutiara Line will span 29.5 kilometres with 21 stations, connecting Silicon Island to Komtar before crossing over to Penang Sentral in Butterworth.
