Putrajaya Cancels RM100M Penang Hill Cable Car Project

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The federal government has cancelled the Penang Hill cable car project worth RM100 million.

Penang Chief Minister Chow Kon Yeow said the state government was only notified of the project cancellation earlier today.

“We are disappointed with the decision by the federal government. The cancellation will surely affect not only the continuity of the Bukit Bendera development plan, but also Penang’s economy in general.

Zainudin Ahad/The Star

“In the current economic situation due to the Covid-19 pandemic, such public infrastructure can help stimulate the local market, provide job opportunities and trigger other ripple effects to the state’s economic development,” he said in his daily message aired live over his official Facebook page today.

The RM100 million allocation for the cable car project, aimed at boosting tourism at Penang Hill, was announced during the last 2020 Budget, tabled by the then Finance Minister Lim Guan Eng.


The project’s pre-feasibility study is still ongoing and expected to be completed in the second half of the year.

Chow said the data collected will now be kept for future use, and that the state will further discuss the cancellation with the federal government.

“The federal government should have added the allocation to the state in view of the economic challenges faced due to the pandemic. But this…allocation was cancelled…without a discussion with the state government or even getting feedback from Penangites.

“This is akin to the federal government punishing Penang people,” he added. – NST