The Government of Malaysia is progressing with the USD14 billion Andaman Island land reclamation project off the coast of Penang, adding around 760 acres of new land to support high-end residential, commercial and mixed-use development. The project, led by Malaysian developer E&O Bhd, forms part of a wider coastal masterplan aimed at easing land constraints around George Town, a UNESCO World Heritage Site, and meeting rising demand for waterfront real estate.
The reclaimed island is being constructed using large-scale dredging, sand filling and ground stabilisation techniques, including prefabricated vertical drains and deep foundation piles. Andaman Island will be connected to Penang Island via two road bridges linking to Straits Quay and the Gurney Bay development. Construction is expected to be completed by 2030, with residential towers already under development.
Unlike the Johor-based Forest City project, which stalled after heavy reliance on foreign demand and overseas financing, Andaman Island is smaller in scale and targeted primarily at domestic and regional buyers. The development is planned to accommodate about 16,000 residents across roughly 5,000 housing units, alongside retail, office and leisure facilities. Early sales momentum has been reported as strong, with several condominium phases already sold out.
