The procurement process for the Penang Light Rail Transit (LRT) Mutiara Line has entered a new phase, with the systems package officially moved to an e-bidding exercise as competition among major contractors intensifies, according to a report by CIMB Securities.
The systems package, which covers signalling, rolling stock and track works on a design-and-build basis, is being re-tendered after multiple rounds of clarifications and revisions since the project was first called in December 2024.
The latest move by MRT Corp follows a series of tender adjustments over the past year, including changes to local content requirements for rolling stock and the proposed establishment of a local train assembly facility. In August 2025, the train configuration was also revised from four-car to three-car sets ahead of the final tender submission.
According to the report, seven consortia had initially submitted bids for the package and will now be invited to participate in the reverse e-bidding process. The approach is intended to secure a more competitive pricing outcome, although the lowest bidder will not necessarily be awarded the contract.
The bidding field includes major Malaysian infrastructure players such as Gamuda Berhad, MMC Corporation Berhad, YTL Group, MRCB, as well as a joint venture between WCT Holdings and Lion Pacific Sdn Bhd, alongside a consortium involving Dhaya Maju Infrastructure Asia and Berjaya Rail.
Most bidders are reported to have partnered with Chinese firms, except MMC, which has collaborations with South Korea’s Hyundai Rotem for rolling stock and Japan’s Hitachi for signalling systems.
It was reported that the WCT-Lion Pacific joint venture had previously submitted the lowest bid at around RM2.7 billion, while other offers were understood to have been revised to below RM3 billion amid intense competition.
Despite the competitive pricing, industry observers noted that experienced players such as Gamuda and MRCB remain strong contenders, given their track records in large-scale rail projects including the Klang Valley MRT and LRT3 developments.
The procurement process has also seen repeated delays. In March 2026, MRT Corp extended the validity of tender bonds until end-June 2026, signalling ongoing negotiations and continued lobbying among bidders.
Analysts expect the outcome of the reverse e-bidding exercise to set a key benchmark for future rail infrastructure contracts in Malaysia, as the government continues to prioritise cost efficiency and local industry participation in major transport projects.
