PETALING JAYA: There is stiff competition and intense lobbying for Penang light rail transit’s (LRT) systems package, according to CIMB Research.
The race for the Mutiara Line systems package, which entails the provision of signalling, rolling stock and track works on a design-and-build basis, is shaping up to be one of the most closely watched transport contracts in the country.
Referring to a report by a news weekly, CIMB Research said MRT Corp has opted to undertake an e-bidding exercise for the systems package.
The latest decision to initiate the e-bidding tender came after MRT Corp issued numerous clarifications since June 2025, leading to refinements in the tender requirements.
The tender was first called in December 2024 but was subsequently revised, with several deadline extensions.
Key requirements of the initial tender included a higher proportion of local content for the rolling stock and the establishment of a local assembly plant for train car sets.
However, in August 2025 – ahead of the final tender closing in September 2025 – MRT Corp issued another addendum, revising the rolling stock design from four-car to three-car train sets.
It was reported recently that seven consortia had previously submitted bids for the Mutiara Line systems package and will be invited to participate in the e-bidding process.
Local participants include Gamuda Bhd
; MMC Group; YTL Group; Malaysian Resources Corp Bhd (MRCB); a joint venture (JV) between WCT Holdings Bhd and Lion Pacific Sdn Bhd; and a partnership between Dhaya Maju Infrastructure Asia and Berjaya Rail.
A majority of the bidders have some form of cooperation with Chinese partners, except for MMC, which has tie-ups with Hyundai Rotem for rolling stock and Japan’s Hitachi for signalling works.
While the WCT-Lion Pacific JV submitted the lowest bid at RM2.7bil, other bidders had purportedly also lowered their bids to below RM3bil.
However, it is worth noting that MRT Corp’s bidding exercise will be done on a reverse basis to establish the most competitive bid price under this project.
This means the winner may not necessarily be the one that submitted the lowest bid.
“Competition remains stiff amid intense lobbying, but we note that both Gamuda and MRCB have handled large-scale metro works in the Klang Valley as lead contractors for the first two MRT (mass rapid transit) lines and LRT 3 projects, respectively.
“Gamuda has also proven its mettle overseas by taking on various tunnelling and metro jobs in Taiwan, Singapore, and Australia,” stated CIMB Research.
Meanwhile, a fund manager told StarBiz that the reverse e-bidding exercise may squeeze margins, but not necessarily push them to the point of being unworkable.
“Not all companies can last in such an exercise, especially if you can’t work on lower margins.
“The final margin impact depends on how disciplined bidders remain and how much MRT Corp prioritises execution strength over the cheapest headline number.
“That said, a Penang LRT systems win is not just about one contract. It is also about positioning in Malaysia’s rail ecosystem,” said the fund manager.
