Penang South Islands reclamation project set to begin

The long-awaited Penang South Islands (PSI) reclamation project is finally poised to begin its transformative journey. With a focus on sustainability and green living, PSI aims to become a smart city that complements Georgetown and attracts investments.

The first phase of the project, involving the reclamation of Island A, will be carried out by Gamuda Bhd, starting from July 1. This significant milestone marks a major step forward for the ambitious development.

Gamuda Bhd initiates Penang South Islands reclamation

Gamuda Bhd, a leading engineering and construction company, will spearhead the RM3.72 billion reclamation work for Phase 1 of Island A located near the Penang International Airport in Bayan Lepas.

This phase will reclaim approximately 1,260 acres out of the total 2,300 acres designated for Island A. Silicon Island Development Sdn Bhd, a joint venture between Gamuda and the Penang state government, estimates that the total reclamation cost for Island A will amount to RM6 billion.

As per the project development agreement signed in March, Silicon Island has entrusted Gamuda’s wholly owned SRS TC Sdn Bhd as the turnkey contractor for Island A’s reclamation, including common infrastructure works and the construction of a highway. The project is expected to be completed by June 30, 2030, providing a significant boost to Penang’s urban development.

Scaling down and federal government support

Following a request from Prime Minister Datuk Seri Anwar Ibrahim, the Penang state government has scaled down the PSI project from three islands totalling 4,500 acres to a single island measuring 2,300 acres.

This downsizing represents a 49% reduction from the original plan and allows the development works to proceed solely for Island A, known as Silicon Island. The remaining islands, B and C, will no longer be part of the project.

In response to the downsizing, the federal government has pledged additional funds to expedite the construction of the George Town-Bayan Lepas light rail transit, a crucial infrastructure project for Penang’s transportation system. This collaboration between the state and federal governments aims to create a more efficient and integrated urban environment for the benefit of residents and visitors alike.

The commencement of reclamation work for the Penang South Islands project signifies a significant milestone in Penang’s urban development journey. With Gamuda Bhd taking the lead, the first phase of Island A’s transformation into a sustainable smart city is set in motion.

This ambitious project aligns with the principles of environmental, social, and governance, aiming to attract investments and position Penang as a top destination for business and leisure.