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Penang: Buses don’t fly, but neither does the LRT, says economist

For a small population, the Penang government has allegedly chosen mega infrastructure like LRTs that exceed the needs of its population.

Updated 11 months ago · Published on 09 Sep 2025 9:16AM

Penang: Buses don’t  fly, but neither does the LRT, says economist
"The huge pylons to support the LRT take up at least one lane of the roads," said Lim - Picture from Bulletin Mutiara, September 9, 2025

by Ian McIntyre

PENANG needs to do more to convince critics of the proposed Mutiara light rail transit (LRT) project other than remarks such as "buses don't fly in the air," said Dr Lim Mah Hui.

A retired economist, Lim, who is one the fiercest critics of the present Penang transport module of new roads and the LRT, said he would leave it to the ratepayers to judge whether such projects are driven by competency, accountability and transparency (CAT).

"Yes, buses don't fly, but does the LRT proposed by the state fly in the air? People keep hearing the standard and tired refrain that the LRT is needed because there is not enough road space for buses. Don't the huge pylons to support the LRT take up at least one lane of the roads," said Lim in a statement.

No one disagrees that public transport is vital to addressing Penang's congestion and mobility challenges, he added.

"Civil society initially was proactive in proposing public transport projects for the state.

“What we disagree with is the mode of public transport that suits Penang state. For our small population, the state has chosen mega infrastructure like LRTs that exceed the needs of our population. They are inflexible and unable to reach a dispersed population."

Furthermore, the LRTs are environmentally destructive, disrespectful of heritage value, and financially not viable.

"Consider the eye-watering costs: the LRT project now carries a price tag of up to RM17 billion, whilst the Penang Island Link (PIL) is estimated at RM10 billion. Is this the best use of public funds, especially given our federal government national debt of RM1.3 trillion. “Crucially, authorities haven't told us who would bear the LRT annual deficits if ridership targets are not met. Ultimately, it will be the people.”

The humble buses, with dedicated right of way, are best suited to penetrate and serve people in Penang, he stressed.

For major routes with heavier traffic, Autonomous Rapid Transit (ART) with higher carrying capacity is a cheaper and suitable option, he argued.

"Does our Penang state transport exco know that in Singapore, buses carry 3.7 million passengers daily compared to the Mass Rail Transit (MRT) of 3.2 million in the post- pandemic period. If buses can ferry 3.7 million people in Singapore, are we to believe they cannot cater to the needs of 1.6 million in Penang? Consider that Singapore has over 5,000 buses, whereas Penang has only 200 to 300 buses running."

As for enforcement, it's a matter of political will to ensure bus drivers are discipline.

A surveillance camera at the back of each bus plus heavy penalties for errant drivers should do the trick. If Manila, a cowboy city, is able to enforce discipline for dedicated bus lanes, Penang should have no excuse."

"What happened to the water taxi proposal? This could have provided an alternative transport mode that utilises Penang's natural geography without the massive infrastructure costs. It could reduce traffic on the island and on the Penang Bridge without the need for pricier infrastructure."

"A state exco also singled me out and quoted me saying that the Spice Convention Centre would be a white elephant and that Penang didn't need a large convention centre.

“But due to overwhelming demand, even bigger centres have since been built. So, I wouldn't take what he says seriously."

"At no time did I say Penang did not need a large convention centre. What others and I said was that it is not the business of government to build convention centres.

“Let developers do it. But if the government enters into such projects through public -private partnerships, it should secure strong financial returns."

"We criticised the non-transparent and lopsided agreement between Penang Island City Council (MBPP) and SP Setia, the private developer for the SPICE project.

“Our local government provided the land free to SP Setia (through a 30-year concession and lease, extendable for another two further terms of 15 years each)."

The only land SP Setia paid for was a three-acre site to build a hotel.

It was sold at RM100 per square foot, which was perceived to be below market rate.

On top of that, the council contributed upfront RM50 million towards construction costs plus a host of concessions such as waiving development charges, assessment rates, and quit rent for the buildings (except retail outlets).

The council also provided extra density for SP Setia's projects in other parts.

The value of these other concessions could add up to another RM50 million .

"For RM100 million, what does our government get in return? A right to use the convention facilities for free for 42 days per year. Is this a balanced agreement?

"Our government has been taken to the cleaners. All these agreements were signed despite our caution and objections to the unbalanced nature of the agreement by a government that prides itself to have CAT," said Lim. - September 9, 2025.

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