Malaysia

Three new projects expected to spark greater growth in Penang

State executive councillor for infrastructure Zairil Khir Johari said that the projects are designed to improve connectivity, reduce congestion and generate more job opportunities for the working class.

Updated 2 months ago · Published on 31 Jul 2026 11:13AM

Three new projects expected to spark greater growth in Penang
Zairil said the TOD is a new chapter in Penang's urban planning. - July 31, 2026

by Ian McIntyre

THREE new infrastructure projects are expected to spark growth in Penang in the next five years, including a bridge linking the island to the nearby Pulau Jerejak, and the country's first transit-oriented development (TOD) project in Sg Nibong.

State executive councillor for infrastructure Zairil Khir Johari said that the projects are designed to improve connectivity, reduce congestion and generate more job opportunities for the working class.

The first is the TOD, which is turning the Sg Nibong area of the island into a transit form of development to capture pedestrian traffic from the Mutiara Light Rail Transit (LRT) project, which has now begun.

Zairil said the TOD is a new chapter in Penang's urban planning.

“This TOD represents a model for how future urban centres across Penang may eventually evolve around high-capacity public transport,” he said in his keynote address at the stakeholder engagement symposium.

Sg Nibong was selected to host the TOD because it integrates the future Mutiara LRT major station, existing interstate and local express bus services, the nearby Penang International Airport, the Bayan Lepas Free Industrial Zone, and surrounding residential communities.

The TOD, proposed on a 23.4ha site, will host several public and private facilities, including commercial buildings, a hospital, a hotel, a bus terminal, a sports complex, a cultural centre, a green park, and a facility for the city council.

A retention pond and a stream will be built to make the TOD area flood-resistant, as the town of Sungai Nibong itself is vulnerable to flash floods.

The proposed TOD also includes a network of walkways to make the project pedestrian-friendly.

Zairil said that limiting car dependency through efficient public transport, pedestrian-friendly design, and parking controls would be key to the success of the proposed TOD.

He acknowledged concerns about worsening congestion along the nearby Jalan Sultan Azlan Shah, given the high-density development proposed for the TOD area.

“The whole idea (of a TOD) is to discourage people from using their cars by designing a system that’s very conducive and pedestrian-friendly, enabling you to get everything you want within a certain convenient radius,” he said.

The state has also decided that the annual Pesta Pulau Pinang site would be relocated to Seberang Prai until the LRT is completed by 2031.

On another matter, the state also confirmed that the Ideal Property Group would undertake the construction of a bridge to Pulau Jerejak from the Queensbay commercial enclave off Bayan Baru.

The bridge was approved several years ago and forms part of a development project involving 32.3ha (80acres) of land on Pulau Jerejak.

The bridge is expected to be completed by 2028 or 2029.  - July 31, 2026.

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