THE Penang government will allocate RM16.8 million in subsidies next year to sustain public bus services, while continuing to invest in road infrastructure, flood mitigation, disaster preparedness and food security under the Penang Budget 2027.
Chief Minister Chow Kon Yeow (PH–Padang Kota), who tabled the state budget at the Penang State Legislative Assembly in Light Street today, said the allocation was crucial to strengthening the state’s public transport system and ensuring that essential services remained accessible to the people.
He said the allocation would support the Mutiara Pass scheme and the provision of free bus services, including CATBridge, CAT George Town, CAT Hospital and BEST KOMTAR.
“To date, public bus services in Penang have recorded 17 million passenger journeys,” he said.
Chow added that the state government would also introduce a one-off Special E-Hailing Incentive Assistance of RM600 for eligible e-hailing drivers in 2027, with a total allocation ceiling of RM9 million.
“At the same time, RM1.2 million will be allocated to continue providing incentive assistance to taxi drivers and school bus operators next year,” he said.
Beyond public transport, Chow said the state government would continue strengthening the road network to improve connectivity and ease congestion at strategic locations across Penang.
*LRT construction benefits local firms*
A key focus is the Penang Mutiara Line Light Rail Transit (LRT) project, which has moved from the planning stage to physical implementation in 2026.
As of September 2026, Civil Main Contract Package 1 (CMC1), covering the alignment from Komtar to Station A1 on Silicon Island, had achieved 15.5% progress.
“The project has also generated business opportunities for local companies, with 150 local small and medium enterprises, contractors and suppliers benefiting from subcontracts worth RM397.07 million,” Chow said.
The LRT line is targeted for full completion and commencement of operations in December 2031.
Another project involves the widening and upgrading of roads in Sungai Dua town, North Seberang Perai, involving an allocation of RM2 million and expected to be completed by September 2027.
An allocation of RM7 million has been set aside for the construction of a 100-foot-wide road behind the former Carrefour site in Seberang Jaya, Central Seberang Perai. The project is also scheduled for completion by September 2027.
The state has allocated RM11 million for land compensation for Phase Three of the road-widening and upgrading project from Jalan Perusahaan to the Jalan Tok Kangar traffic light junction, undertaken by the Penang Public Works Department (JKR). Work is expected to begin in early 2027, with completion targeted within two years.
Other road and traffic improvement projects planned for 2027 include RM1.5mil for Valdor and RM5mil for Penanti.
*Juru-Sungai Dua Elevated Highway progresses*
Chow said another major infrastructure project is the Juru-Sungai Dua Elevated Highway, which aims to alleviate traffic congestion and improve connectivity across Seberang Perai.
“Implemented in several packages, the project recorded 50.69% progress for Package One as of Oct 18 this year, with completion expected by the end of October 2027.
“For Packages Two to Five, the tender process is expected to be completed by the end of 2026, paving the way for construction to begin in early 2027,” he said.
*More funding for flood mitigation*
On flood mitigation, Chow said the state government had implemented eight high-impact projects under a programme worth RM150 million.
“Of these, seven projects had been completed, while the Sungai Permatang Rawa flood mitigation project remains under construction and is expected to be completed in 2027.
“To further strengthen the state’s preparedness for disasters and emergencies, RM4.34 million has also been earmarked for the development of a Disaster Humanitarian Logistics Centre at Bukit DO in Central Seberang Perai.
“The facility is expected to strengthen logistical support and coordination in delivering humanitarian assistance during disasters,” said Chow.
*RM6.5mil to strengthen agricultural sector*
In strengthening food security, Chow said the state government will allocate RM6.5 million for agricultural development in 2027, with an emphasis on vegetable and paddy production, mechanisation, Internet of Things (IoT) technology, the development of the next generation of farmers, agro-based industries and permanent food production parks.
Chow said the state government recognised the financial pressures faced by farmers due to rising input costs.
“As part of its efforts to ease the burden, a one-off living assistance payment of RM500 is being distributed this year to 6,510 paddy farmers and vegetable growers, involving a total allocation of RM3.25 million.
“The distribution is expected to be completed by the end of this year,” he said.
Meanwhile, the state is also developing the Penang Durian Valley @ Relau project through the Northern Corridor Implementation Authority (NCIA).
Covering 22.3 acres at the Relau Agricultural Centre, the project has achieved 51.87% progress as of Oct 15 this year. It is expected to be completed by the end of the first quarter of 2027.
Managed by Penang Agrotech Sdn Bhd, the initiative aims to boost agro-tourism, enhance the commercial value of durians and create wider economic opportunities for local entrepreneurs and farming communities.
*Aquaculture and livestock industries receive continued support*
Chow said the state government will also continue strengthening Penang’s aquaculture industry, particularly marine fish cage farming, which involves more than 224 operators.
“Key species being cultivated include Asian sea bass, red snapper, nyok-nyok, grouper and golden pompano, which are among the major contributors to marine fish farming production in Peninsular Malaysia.
“In addition to supporting production, the state government will encourage the adoption of good aquaculture practices and promote research into fish health to improve productivity, minimise disease risks and ensure the industry’s long-term sustainability.
“The livestock industry will likewise receive continued support, with 45 participants under the livestock industry development programme having received a total allocation of RM972,500 this year,” he said.
He explained that the assistance covers improvements to livestock sheds and animal enclosures, the procurement of livestock breeding stock and the provision of farming equipment.
“Looking ahead, the Penang Veterinary Services Department (JPV) is set to receive a state development allocation of RM5.52 million in 2027 to support the continued development of the state’s livestock sector,” said Chow.
Story by Riadz Akmal