Penang LRT project still on track, MRT Corp says
MRT Corp explained that approval for advanced works, as required by Section 20A of the Town and Country Planning Act 1976, was only obtained on April 15.
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The Star
6 days ago
- The Star
Construction sector eyes growth with PML tender
CIMB Research believes the spotlight had shifted to the hotly contested systems package. PETALING JAYA: The construction sector looks poised for a new growth cycle as the systems package for the Penang Mutiara Line (PML) light rail transit (LRT) project approached a critical tender stage, expected to benefit seasoned infrastructure players with proven track records and strong balance sheets. Aimed at transforming Penang's urban mobility, the PML is a 29.5 km LRT system linking Komtar to Silicon Island, with a planned extension to Penang Sentral via a five km long bridge. MRT Corp, the project owner, was set to call for tenders for the bridge section by October 2025, according to a recent media report. Advanced works on the main civil stretch between Komtar and Silicon Island were due to begin this month. CIMB Research believed the spotlight had shifted to the hotly contested systems package, noting: 'Nevertheless, we opine that the near-term focus centres on the highly awaited systems package of the PML that has attracted attention from local and international contractors alike.' It was reported that at least seven consortia submitted bids for the systems contract, which includes rolling stock, signalling, and track components. MRT Corp's stringent eligibility requirements – such as RM500mil worth of urban rail experience in the past decade and local manufacturing presence – helped narrow the field to heavyweights with established rail credentials. The research house observed that 'bids requiring the least financial commitment from the government would gain the upper hand', especially since the contract involved capital expenditure and long-term leasing and maintenance obligations, possibly extending up to 30 years. Among the front-runners, Gamuda Bhd teamed up with China Railway Rolling Stock Corp (CRRC), which operates a plant in Batu Gajah, and Japan's Hitachi for signalling. MMC Engineering partnered with Hyundai Rotem for rolling stock, Hitachi for signalling, and Emrail for track works. YTL Group's consortium included CRRC, Siemens, and Emrail. Other notable bids came from Berjaya Rail with a China-based partner and Hitachi; a joint venture between Lion Pacific and WCT Holdings Bhd involving China High Speed Rail Co, Siemens, and China Harbour Engineering; Malaysian Resource Corp Bhd (MRCB) with Alstom; and Dhaya Maju Infrastructure Asia with Siemens and CRRC. 'Some of the bidders played a leading role during the construction of Klang Valley's urban rail and metro systems,' CIMB Research pointed out, noting that MMC-Gamuda built the Klang Valley's Kajang and Putrajaya mass rapid transit lines, while MRCB was progressing well on Phase 1 of the LRT3 and had secured a RM2.5il turnkey deal for Phase 2. CIMB Research noted that 'the systems package is estimated to cost less than RM3.5bil, although the research house believe the figure could be higher after incorporating the leasing/maintenance components.' With Siemens and Hyundai Rotem having previously assembled MRT rolling stock at the SMH Rail plant in Rawang, local assembly capacity could again prove decisive. MMC Engineering and Hyundai Rotem proposed building a new rolling stock facility in Malaysia, a move that could enhance localisation and ease financing commitments. Despite intense rivalry, CIMB Research flagged a potential surprise: 'While competition remains rife, we postulate that MRCB could emerge as the dark horse for the systems package.' Citing the group's healthy net gearing of 27% and solid infrastructure credentials, the firm noted that MRCB was also 'well-positioned to benefit from the Butterworth link', which could boost the value of its wholly-owned Penang Sentral project. Gamuda, meanwhile, continued to bolster its rail credentials through ongoing civil works on the Komtar–Silicon Island stretch, leveraging its proven track record in delivering turnkey projects domestically and abroad.
New Straits Times
7 days ago
- New Straits Times
Gamuda set to exceed RM45bil orderbook target on strong domestic momentum
KUALA LUMPUR: Gamuda Bhd is set to exceed its RM40 billion to RM45 billion order book target for the year, underpinned by solid progress on domestic project wins. CGS International projects the group could close 2024 with an estimated RM42 billion in secured contracts, excluding a pipeline of high-value opportunities still in play. According to the research house, the estimate does not account for potential wins in Taiwan and Australia, nor major domestic contracts such as the Penang Light Rail Transit (LRT) system and the Inter-State Water Transfer project from Perak to Penang. Securing any of these additional projects would further boost Gamuda's order book, potentially pushing it well beyond current projections, it said in a note. "We expect one more Taiwan win by the end of the calendar year 2025. Moving into calendar year 2026, the pipeline looks promising, as it has three early contractor involvement (ECI) renewable energy projects in Australia. "It has also been shortlisted for the Parramatta Integrated Stations tender in New South Wales, the Northland Corridor highway project in New Zealand and the Sunshine Coast Railway project in Brisbane, Australia," it said. As of June 2025, Gamuda's order book stood at RM37.2 billion, with contract wins year-to-date amounting to RM18.4 billion. The firm has revised its valuation method for the group, switching from a sum-of-parts approach to a market capitalisation-to-order book ratio. It now assumes a sustainable order book of RM42.5 billion, the midpoint of Gamuda's calendar year 2025 guidance of RM40 billion to RM45 billion and has set a new target price of RM7.30, based on a 1.0 times ratio. According to the firm, Gamuda's average adjusted market cap-to-order book ratio stands at 1.2 times.
Focus Malaysia
04-08-2025
- Focus Malaysia
Why build MRT stations near the rich when the rich don't use public transports?
MALAYSIAN property developers are an interesting group of people. They sell their homes before even starting the construction, resulting in a good number of abandoned homes. And recently, a netizen raises another interesting developer practice on the cyberspace which attracted the attention of the online community. According to @evoverebitda, Malaysia is a weird place because the MRT stations are usually conveniently located nearby to the rich enclave. He believes the rich will not be using public transport as they already have drivers, hence these conveniences are but a waste. Malaysia is so weird. All the housing near to MRT in the mid of KL are priced at RM4-12k. You think rich people use MRT to go buy groceries, go work? Most of my neighbours have their own drivers 😐😐😐 Why the rich people area are walkable to MRT but not for mid income people? — 爱薇 (@evoverebitda) August 2, 2025 His post has since turned into a hot bed for discussion, receiving over 8,400 reposts and 123 comments. @evoverebitda further added that his house is next to a restaurant and he could see all the Alphards lined up there as the rich people's drivers usually go there to eat. He said none of his neighbours use the MRT. However, @thishrocks said the expats still utilise the public transports while a sceptical @ucswcc stated that he was generalising all the housing although it only occurred in his area. On another note, @gooner_97 remarked that MRT stations have a way of jacking up the rental price of an apartment unit. @MalayBitcoiner further said that the MRT stations are there to increase the value of the properties bought by these rich people. The mystery begins to clear as we observe more of the comments: And this is why the rich become richer while the poor become poorer. If even the roofs above our heads and the built environment is rigged against us, how will the poor ever be able to escape their circumstances? —Aug 1, 2025 Main image: MRT Corp
