Penang LRT Deal Thoroughly Vetted Despite Single-Source Process, Says Transport Ministry

THE contract for Package 1 of Penang’s Mutiara Line LRT project was awarded through a “single-source request for proposal” but underwent rigorous vetting, the Transport Ministry has confirmed.

The RM7.93 billion contract was awarded to SRS Consortium Sdn Bhd, but the ministry stressed that the single-source method did not mean the deal was granted without due diligence.

After Putrajaya took over the project from the state government in 2024, MRT Corp was appointed as developer and conducted comprehensive reviews of track alignment, work scope, and estimated costs. The public transport operator also obtained independent cost assessments from two quantity surveying firms.

The contract negotiation process began in April 2024 and lasted approximately eight months, followed by a value management exercise in April 2025 that finalised the amount at RM7.93 billion.

SRS was originally appointed by the Penang state government as the project delivery partner for the Penang Transport Master Plan through an open tender in October 2015. The company had independently funded initial technical studies, designs, and environmental and social impact assessments before Putrajaya assumed control.

The state government requested the single-source mechanism to avoid legal disputes from terminating SRS’s existing appointment, the ministry said.

Importantly, Packages 2 and 3 of the project will be subjected to open tender, reflecting the government’s commitment to transparency and competition in public procurement.

The Mutiara Line, featuring 22 stations including Penang Sentral in Butterworth and Macallum Street on the island, is connected by a 6km cross-strait bridge. Operations are targeted to begin in 2031.

Source: Free Malaysia Today