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GEORGE TOWN, July 29 – Despite the current economic climate marked by rising construction costs and inflation, MRT Corporation is committed to ensuring the Penang Mutiara Light Rail Transit (LRT) project remains within a budget of RM16 billion. This assurance comes directly from the corporation's chief, highlighting a proactive approach to managing expenses and delivering a vital infrastructure project for Penang.

The Mutiara LRT line is poised to be a transformative project for Penang, promising to significantly improve public transportation connectivity across the island. The line is envisioned to connect key areas, reducing traffic congestion and providing a more sustainable and efficient travel option for residents and visitors alike. The project’s scope includes multiple stations strategically located to serve densely populated areas and major commercial hubs.

“We are acutely aware of the challenges posed by escalating costs and inflation,” stated the MRT Corporation chief. “However, we have robust cost management strategies in place and are actively working with contractors and stakeholders to identify efficiencies and mitigate potential risks. Our target remains firmly set at keeping the total expenditure for the Mutiara LRT Line under RM16 billion.”

Strategic Cost Management & Mitigation Strategies

The commitment to staying within budget isn't just a statement; it’s backed by a detailed plan. MRT Corporation is employing several key strategies:

• Value Engineering: A thorough review of design and construction methods to identify opportunities for cost savings without compromising quality or functionality.
• Negotiated Procurement: Working closely with contractors to secure competitive pricing and favorable contract terms.
• Risk Management: Proactively identifying and mitigating potential risks that could impact costs, such as material price fluctuations and supply chain disruptions.
• Technology Adoption: Exploring and implementing innovative construction technologies to improve efficiency and reduce labor costs.

The Penang state government has consistently emphasized the importance of the Mutiara LRT project for the state’s long-term development. The improved public transport system is expected to boost economic growth, attract investment, and enhance the overall quality of life for Penangites.

The ongoing commitment from MRT Corporation to manage costs effectively signals a dedication to delivering this crucial infrastructure project responsibly and efficiently. The focus on value engineering, procurement strategies and risk mitigation demonstrates a proactive approach to ensuring the Mutiara LRT line becomes a reality within the allocated budget, benefiting the people of Penang for generations to come. Updates on project progress and cost management initiatives will be regularly released to the public, ensuring transparency and accountability throughout the project lifecycle.

The project is currently undergoing detailed planning and design phases, with construction expected to commence in the near future. The successful completion of the Mutiara LRT line will mark a significant milestone in Penang's journey towards a more connected and sustainable future.