Malaysia Rapid Transit Corporation Sdn Bhd (MRT Corp) has clarified that the new MYR16.8 billion budget ceiling for the LRT Mutiara Line is not an uncontrolled cost increase. Instead, it reflects the current market conditions, including global supply chain inflation and an increase in land values over the past eight years.
MRT Corp announced that the revised budget, approved by the federal government in December 2024, is a ceiling, and the final project cost will be determined by upcoming open tender exercises.
The project’s budget breakdown is as follows:
- A conditional contract for Civil Main Contract Package 1 was awarded to SRS Consortium Sdn Bhd for MYR8.31 billion in January of this year. This was later reduced to MYR7.93 billion after a value management exercise in April.
- The budget also includes an estimated MYR2 billion for land acquisition.
- The remaining MYR6.8 billion is allocated for Civil Main Contract Package 2, a depot, and a systems turnkey contract, all of which have yet to be awarded, as well as project management and consultancy costs.
The Mutiara Line will span 29.5 km with 21 stations, running from Silicon Island to Komtar and extending to Penang Sentral in Butterworth. The first phase covers a 24 km section from Komtar to Island A of the Penang South Island project, featuring 19 stations.
According to MRT Corp, the original estimated cost was MYR10 billion in 2016 for a shorter alignment. The federal government’s decision in early 2024 to take over the project and extend the alignment to Penang Sentral increased the initial project cost by MYR3 billion to MYR13 billion.
