Malaysia

Penang undersea tunnel project remains relevant, says state government

Proposed third link expected to ease traffic congestion, spur economic growth and serve as new tourism icon

Updated 1 year ago · Published on 21 May 2025 12:48PM

Penang undersea tunnel project remains relevant, says state government
Latest design proposal offers a significant alternative for the continuity and strategic direction of the Penang Third Link project - May 21, 2025

THE Penang state government maintains that the proposed undersea tunnel project linking the island to the mainland remains relevant and is expected to bring long-term benefits to the public and state development once completed.

State Executive Councillor for Infrastructure, Transport and Digital, Zairil Khir Johari, said the latest design proposal offers a significant alternative for the continuity and strategic direction of the Penang Third Link project.

“The proposed design takes into account factors such as efficiency, feasibility, effectiveness and its social and environmental impacts.

“It is not merely an infrastructure project, but is also expected to become a new icon for Penang, with potential as a tourism draw,” Sinar Harian cited him saying during the Penang State Legislative Assembly sitting on Wednesday.

Zairil (DAP–Tanjung Bungah) was responding to a written question from Lee Khai Loon (PKR–Machang Bubok) on the status of the tunnel project and its potential impact on local communities and state development.

In April last year, Chief Minister Chow Kon Yeow stated that no final decision had been made regarding the tunnel, which is designed to connect Gurney Drive on Penang Island to Bagan Ajam in Seberang Perai. The state is still awaiting recommendations from the Penang Steering Committee on the matter.

Zairil added that the project, once implemented, could help ease severe traffic congestion on the Penang Bridge and surrounding access roads by channelling high traffic volumes through the proposed tunnel corridor.

“With traffic diverted through this alignment, it would directly benefit users while supporting more sustainable economic development in the state,” he said.

He noted that the state government remains optimistic about the project’s potential but emphasised that its implementation will depend on the outcome of the ongoing feasibility study.

“Based on the Master Agreement with the contractor, the state government retains the right to decide whether to proceed with the project once the study is complete,” he said.

Earlier reports indicated that the Penang Port Commission’s Master Development Plan had been approved by its board last year. However, the proposed expansion of the North Butterworth Container Terminal (NBCT) under that plan overlaps with the current proposed location for the tunnel.

The 6.5-kilometre undersea tunnel and three associated highways form part of the Penang Transport Master Plan (PTMP), which has a total estimated value of RM46 billion. The tunnel package alone is valued at RM6.3 billion and is envisioned as the state’s third cross-channel link to alleviate congestion on the existing Penang Bridge. - May 21, 2025

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