Initial design

In April 2015, news reports emerged about the proposed Light Rail Transit (LRT) line from Komtar to the Penang International Airport. The 17.5 km (10.9 mi) line was expected to cost around RM4.5 billion.^[6] Chow Kon Yeow, who held the position of Local Government, Traffic Management and Flood Mitigation Executive Councillor at the time, was quoted as saying that the LRT would take five to six years to complete.^[7] Months later, Chief Minister Lim Guan Eng announced the appointment of SRS Consortium as the Project Delivery Partner (PDP) for the Penang Transport Master Plan (PTMP). The consortium consists of Gamuda Berhad as the majority shareholder, Penang-based Loh Phoy Yen Holdings and Ideal Property Development.^[8]

In December that year, SRS Consortium announced that the construction of the Bayan Lepas LRT would commence in 2018, with the goal of completing it by 2024.^[9] The original route of the Bayan Lepas LRT was disclosed in February the following year.^[10] The proposed route consisted of 19 stations spanning a 22 km (14 mi) stretch between Komtar and Permatang Damar Laut, with another eight stations planned for the proposed Penang South Islands (PSI) reclamation project, bringing the total length of the LRT line to 30 km (19 mi).^[10][11]

As public transportation falls under the ambit of the Malaysian federal government, in March 2016, the state government submitted the proposed Bayan Lepas LRT system to the federal Land Public Transport Commission (SPAD) for approval.^[12][13][14] An Environmental Impact Assessment (EIA) was also submitted to the federal Department of Environment (DOE) in 2017.^[14]

Funding became a contentious issue, as at that point, Penang was an opposition state governed by the Pakatan Rakyat bloc (now Pakatan Harapan).^[15][16] The Najib Razak administration had ignored requests by the state government for federal funding, forcing the state to resort to the PSI reclamation project to fund the PTMP.^[15][17] The state estimated that the sale of the reclaimed islets would generate RM70 billion in revenue, which would help finance the cost of PTMP. Additionally, the development of the islets was projected to result in economic spillover of RM100 billion.^[15][16]

Receiving government support

The PSI project became a political issue prior the elections in 2018, with the incumbent Barisan Nasional federal government opposing the reclamation on the grounds of protecting the livelihoods of the affected fishermen.^[18] The PTMP, along with the PSI, formed part of Pakatan Harapan's (PH) 68-point election manifesto for Penang.^[19] Consequently, the Bayan Lepas LRT, which was dependent on the reclamation project, did not receive approval until after the elections when PH came into federal power. In 2019, the federal Ministry of Transport gave conditional approval for the Bayan Lepas LRT. The estimated cost of the line had increased to RM8.4 billion.^[20]

Detailed plans of the Bayan Lepas LRT were put on public display in 2019 as part of the conditional approval.^[21] Despite dissent from certain interest groups, the LRT received close to 98% support from the public.^[22][23] Chow, who succeeded Lim as Chief Minister after the election, stated that construction of the LRT would begin in 2020, and that the state government had secured a sovereign guarantee from the Mahathir administration to issue bonds for the LRT.^[12][24][25]

Successive withdrawal of government support

Komtar

Macallum

Bandar Sri Pinang

Skycab

East Jelutong

The Light

Gelugor

USM

Batu Uban

Pesta

Sungai Nibong

Bukit Jambul

SPICE

Jalan Tengah

FIZ North

FIZ South

Sungai Tiram

Penang Airport

Permatang Damar Laut

Penang Sentral

Silicon Is.

A1

A2

A3

A4

Locations of the stations. Interchange stations are marked in red and provisional stations in black.

Following the Sheraton Move that led to the toppling of the Mahathir administration by the right-wing Perikatan Nasional (PN) in 2020, the federal government rescinded the guarantee for a US$500 million loan application to the Asian Development Bank (ADB) for financing the Bayan Lepas LRT.^[12][26] PH politicians from Penang subsequently accused the PN administration of "political vendetta".^[27][28] In the midst of the political feuding and the nationwide quarantine imposed in response to the COVID-19 pandemic, the state government announced that they would pursue other financing options for the LRT project.^[28][29] By then, the project was estimated to cost RM9.5 billion.^[28]

Revival and redesign

In 2022, the state government initiated a request for proposal (RFP) to obtain private funding and pre-qualify potential operators of the Bayan Lepas LRT.^[30] The RFP received eight submissions from local and international consortiums by the end of the year, with the state government planning to commence construction in 2023.^[31][32]

The federal election in 2022 resulted in a unity government headed by PH chairman Anwar Ibrahim. As Prime Minister, Anwar announced additional federal allocations in May 2023 to expedite the development of the Bayan Lepas LRT line.^[33] With more funds being made available, the state government decided to scale down the PSI project from three to one islet (Silicon Island).^[34] After months of further studies, in 2024, the federal government took over the LRT line, renaming it the Mutiara LRT Line.^[35][36] Mass Rapid Transit Corporation was appointed the developer and asset owner, while SRS Consortium is to be offered the contract for the first segment that stretches from the Silicon Island to Komtar. Significant changes were made to the alignment, including a cross-strait extension from Komtar to Penang Sentral at Butterworth, as well as the relocation of the proposed depot to Sungai Nibong.^[35][37] The line is projected to be completed by 2030.^[38]