RM7.5 bil Penang highway project: experts warn of cost, environmental risks

Transport experts, public advocates sound alarm over the Pan Island Link 1 highway project, questioning its cost-effectiveness and impact while urging a shift toward sustainable solutions

Transportation experts have raised concerns over the Pan Island Link 1 highway project in Penang on its cost-effectiveness and potential socioeconomic impacts. – PenangPropertyTalk pic, January 9, 2025

GEORGE TOWN – The Economy Ministry has accepted the controversial Pan Island Link 1 (PIL 1) highway project for consideration of funding, but a transport consultant has raised concerns over its cost-effectiveness and potential socioeconomic impacts, urging the ministry to make a prudent decision moving forward. 

Rosli Azad Khan, a transport consultant, said that the selection of the highway project for consideration suggests the ministry sees some merit in the proposal put forward by the state government.  

However, he expressed concern over the hefty RM7.5 billion price tag (as of 2019), questioning the project’s cost-effectiveness, the state’s priorities, and whether taxpayers may be overburdened. 

Transport consultant Rosli Azad Khan. – Courtesy pic, January 10, 2025 

“The ministry’s decision must carefully weigh the long-term economic, environmental, and social benefits against the costs and public sentiment,” Rosli told Scoop when contacted. 

The comments come after Penang’s Chief Minister, Chow Kon Yeow, revealed that the highway project was one of eight proposals from the state accepted by the ministry for potential funding under the Fifth Rolling Plan (RP5) of the 12th Malaysia Plan. 

Rosli added that while the project could reduce travel time around Penang island, especially in areas suffering from chronic congestion, its high cost raises questions about whether it is the best solution.  

He pointed out that alternatives, such as improving public transportation, optimising traffic management systems, and investing in less invasive infrastructure, could achieve similar results at a much lower cost. 

“Building more highways often encourages car dependency, which could exacerbate congestion in the long run rather than alleviating it,” he stressed. 

Conflicting priorities 

Rosli, along with Zulfikar Ali Abdul Aziz, secretary of the Penang Public Transport Users Association (Petua), also raised concerns about the conflicting priorities of the Penang government. 

While the state aims to encourage public transport usage to address traffic congestion, it is simultaneously pushing for a major highway project. 

Rosli emphasised that an effective light rail transit (LRT) system could provide a sustainable solution to the island’s congestion issues, reducing reliance on private vehicles and improving connectivity.  

He expressed concern that investments in both the highway and the LRT could dilute resources and send mixed signals about Penang’s long-term transportation vision. 

Petua secretary Zulfikar Ali Abdul Aziz. – Scoop file pic, January 10, 2025 

“The focus should ideally be on projects that complement each other and align with sustainable urban development goals. This makes the LRT a more favourable option,” he argued. 

Given that the decision is now in the hands of the Economy Ministry, Rosli called for a comprehensive cost-benefit analysis of PIL 1, factoring in environmental impact, opportunity costs, and long-term economic viability.  

He also suggested that the ministry prioritise public consultation to ensure the project aligns with the needs of Penangites and garners their support. 

Rosli further proposed exploring alternative congestion solutions, such as enhancing public transportation, introducing Bus Rapid Transit (BRT), implementing smarter traffic management systems, or improving existing road infrastructure.  

“If the project’s benefits are limited to a small portion of the population while the costs are disproportionately high, the ministry should consider phasing or scaling it down,” he added.  

“A holistic evaluation would help ensure any decision aligns with the public good and national priorities.” 

Opposition to the highway project 

Meanwhile, Zulfikar strongly opposed the highway project, arguing that it should not receive federal funding due to the potential environmental damage it would cause.  

The highway’s construction involves tunnelling through Penang Hill, a sensitive area that could suffer significant harm. 

Speaking to Scoop, Zulfikar emphasised that federal funds would be better allocated toward expanding the state’s public transportation network.  

He noted that Rapid Penang currently operates with fewer than 250 buses, while Penang requires at least 1,000 to effectively serve its 1.8 million residents. 

“Instead of adding more roads, we should focus on solutions that reduce car dependency. Improving public transportation services, such as buses and ferries, would better meet the transportation needs of the people,” he said. 

Zulfikar also pointed out that simply building more roads would shift bottlenecks from one area to another.  

For Petua, any road project must include provisions for public transport, such as bus stops, to be deemed viable. 

“For us, a road should not just move cars; it should serve people, and if a road project doesn’t cater to public transport, it should not be considered,” he stressed. 

Environmental concerns and public opposition 

The PIL 1 project, first announced in July 2018, has drawn brickbats from civil society groups, who are concerned about its environmental impact.  

The tunnelling portion of the project, which involves “drill and blast” operations through Penang Hill, has drawn particular scrutiny due to the area’s environmental sensitivity. 

A petition launched by concerned Penangites in 2018 called for the cancellation of the project, and local NGOs staged a protest against it outside the Penang state legislative assembly on August 6, 2018.  

The protestors called for the project to be shelved due to its potential environmental and social consequences. – January 10, 2025