
More politicians have appeared to jump on the bandwagon, reiterating what the civil societies have always been saying: that the project has gone astray from its original perspective, which was to move people, not cars, and that reclamation was bad for the environment.
The crux of the PTMP is the reclamation of three islands, which were to be sold to the highest bidder to fund the road and public transport projects, such as the LRT.
NGOs said the Penang South Reclamation (PSR) project was untenable and would cause great harm to the environment and marine life. Close to 10,000 fisherfolk will be affected by the project at the southern coast of Penang and in the waters of Perak. Sand is to be mined from Perak to be used in the reclamation.
The recent privatisation of the reclamation of one of the three islands became the trigger for the renewed objections, with many claiming that the PTMP has turned into a landbank expansion exercise, as opposed to the public transport project originally envisioned.
The proposed LRT project was doomed to failure as it would not have enough passengers to make money, even given the population growth over the next two decades.
Even the highway projects proposed are also said to be wasteful, as they would only alleviate traffic for a few years, experts with Penang Forum claim.
Civil society groups have urged for a modern bus rapid transit (BRT) system or a newer autonomous rail rapid transit (ART) system similar to the one in Iskandar Johor, as these are cheaper than the LRT and could serve a larger populace in the long run.
But those in favour of the PSR and PTMP said the extra land created through reclamation would create thousands of jobs and foreign investment of up to RM70 billion over the next 30 years. Fishermen also stand to benefit from generous ex gratia, new jetties and brand new boats for them to ply their trade.
The highway and LRT projects have to run in tandem, the proponents say, so as to ensure better general mobility in the state, as it has been plagued by perennial traffic congestion over the years.
As for the reclamation, the proponents contend that there is no choice but to monetise the reclaimed islands to pay for infrastructure projects, as the federal government, now led by political rivals, will not help.
With the debate raging over the past decade, FMT looks back at how the PTMP was conceived, its core issues and why the Penang government, civil societies and fishermen have been at loggerheads for the past decade.
Early days

Shortly after the then Pakatan Rakyat took over the Penang government in 2008, it looked to alleviate a pressing congestion problem in the state, forming a transport council comprising experts and NGOs to develop a transport master plan.
Later, the state government and the Northern Corridor Implementation Authority hired three companies to carry out the project on April 27, 2011 at a cost of RM3.2 million: Halcrow Consultants (transport and infrastructure planning), AJC Planning Consultants (land use planning) and Singapore Cruise Centre (water taxi and pier).
This resulted in two core plans being presented to the Penang government in 2012.
The first plan was aimed at easing congestion at traffic hotspots on the road, improving bus services, and developing trams and ferries. No LRT or monorails were proposed.
The second plan looked to provide a “balanced public transport and road system” through the introduction of trams, a new bus network and seven highways.
The two proposals, announced in 2013, listed six financing options for the project, which carried an estimated cost of RM27 billion: (i) federal funding or land alienation; (ii) incentives for development rights for contractors; (iii) tolls and ticket fare; (iv) request developer to donate funds for transport project; (v) charging land value appreciation taxes, and (vi) ad revenue on public transport.
However, the state opted for neither of the two plans. In 2014, it called for a request for proposal (RFP) for the project, and in 2015 announced that SRS Consortium, a development consortium led by Gamuda, had won the bid for the project.
This plan was to be funded with a massive land reclamation off Penang’s southern coast near Permatang Damar Laut, which would see the development of three artificial islands totalling 4,500 acres. Essentially, SRS would be able to monetise these islands for the benefit of the state to carry out public transport and highway projects.
The three islands, measuring at least 2,550 football fields or 76,000 Olympic-sized swimming pools were to be reclaimed and sold to the highest bidder to finance the project.
SRS’ plan was to build highways, an LRT line, a BRT system, among other measures to alleviate traffic on the island and mainland. The state has put one highway project and the island’s LRT project as a priority.
Civil society groups, however, spoke out against the alternative PTMP proposed by SRS, arguing that the focus had shifted to building more roads than on public transportation.
They also voiced concerns over the environmental and economic impact of the land reclamation, particularly on fishermen in the state.
The Pan Island Link 1 (PIL 1), a RM7.5 billion highway that is mostly tunnelled through the Penang Hill range and cutting across two public parks, also raised concerns of experts and NGOs.
Questions were also asked about the viability of the project, such as population projections and cost.
In the face of criticism, the state government said the PTMP essentially included most of the recommendations in the earlier NGO-approved plan and stressed that both road and public transport had to be developed.
Throughout the years, the state government and the opposing civil society groups have clashed over specifics of the PTMP including on land reclamation.
Tunnel incorporated
On April 28, 2011, the Penang government signed a RM6.3 billion deal with a Sino-Malaysian consortium to carry out an undersea tunnel and three roads project. For context, the project was signed on the sidelines while the study on the PTMP was still being conducted.
Consultants formulating the PTMP had no choice but to include the project under the blueprint, although it was carried out by a different company, Consortium Zenith. For context, the Halcrow consultants were hired on April 27, 2011.
Zenith would build a tolled undersea tunnel between Butterworth on the mainland and George Town on the island.
The inclusion of the undersea tunnel and roads project raised PTMP’s cost from RM27 billion to RM46 billion, according to chief minister Chow Kon Yeow, who was Penang local government chairman in 2017.
Where are we now?
As of now, there has been no movement on the PTMP’s core projects, the LRT and PIL 1 highway.
The undersea tunnel and roads project, carried out separately by Consortium Zenith, have technically begun – with work on one bypass road in Air Itam having started last year, but with no actual progress in sight.
They were already paid for the project through a land swap at Seri Tanjung Pinang, a piece of land reclaimed during the Barisan Nasional era.
The PTMP projects under SRS consortium have been given regulatory approvals in 2019, barring the reclamation and LRT project.
The reclamation project, despite getting the green light from the environment department (DoE) is pending an appeal by fishermen, which will be heard in mid-July. The LRT line, while approved, has yet to get a railway scheme approval, which details the locations of stations and their alignment.
Funding and regulatory issues have held back the start of the reclamation, LRT and PIL 1 highway projects. With no funding, it appears that the projects might take a longer time to begin.
Penang has asked for loans, bonds and other sorts of funding from the federal government, but none have materialised, even when Pakatan Harapan ruled in Putrajaya.
Due to the lack of funding, the state recently agreed to privatise the reclamation of one of the three islands to Gamuda Engineering, so as to meet the demand for more land for the Bayan Lepas industries.
The ball is now in Gamuda’s court to find funding for the reclamation, but civil societies have cautioned against doing anything just yet, as the appeal by the fishermen is yet to be heard.
The loud noises from politicians today may well make the fishermen’s case stronger, and drown out the state’s plans for the reclamation.