GEORGE TOWN, Aug 7 — Bank Pembangunan Malaysia Bhd (BPMB) and Hartasuma Ropeways Sdn Bhd, a wholly owned special purpose vehicle (SPV) of Hartasuma Sdn Bhd, have signed a collaboration agreement today to fund the new Penang Hill cable car project.

The initiative aims to enhance transportation access to Penang Hill, expand connectivity to its Biosphere Reserve, and stimulate the state’s tourism sector.

This major infrastructure project involves a financing facility worth RM367.2 million. As the long-term concessionaire, Hartasuma Ropeways will be responsible for developing, financing, operating, and maintaining the entire cable car system.

A Boost for Sustainable Infrastructure and Tourism
BPMB Group Managing Director of Corporate and Investment Banking, Mohamed Nazri Omar, said the financing reflects BPMB’s commitment as a development financial institution to support sustainable infrastructure that delivers long-term social and economic benefits.

“This RM367.2 million financing facility highlights our focus on sustainable tourism infrastructure that generates meaningful social and economic impact.

“By enabling the Penang Hill cable car project, we’re strengthening Penang’s position as a world-class tourism destination while creating meaningful opportunities for the local community,” he said at the MoU signing ceremony held today.

The agreement was signed by Gerald Goh, BPMB Group Head of Coverage, and Tan Sri M. Ravindran, Executive Director of Hartasuma. It was witnessed by Penang Chief Minister Chow Kon Yeow.

BPMB’s First Blended Finance Initiative
Mohamed Nazri also noted that the project marks BPMB’s first blended finance initiative, combining debt financing with up to RM30 million in equity investment through its subsidiary BPMB Dana Sdn Bhd.

Tan Sri Ravindran said the project focuses on creating a shared heritage that can be passed down to future generations.

“With this milestone achieved, our focus now shifts to implementation, aiming to deliver a globally admired transformation experience by early 2027,” he said.

Enhancing Connectivity Without Replacing Funicular Rail
Chief Minister Chow highlighted that the cable car aligns with Penang’s vision for sustainable tourism, balanced development, and long-term planning.

“Today’s MoU is not just about financing. With funicular ridership exceeding one million passengers this year and major upgrades at the Astaka food court underway, the urgency for this project is clear.

“The cable car will not replace the funicular rail but complement it—easing congestion, improving visitor experience, and enhancing preparedness during peak times,” he added.

Key Project Features
Passenger Capacity: Up to 1,400 passengers per hour per direction

Travel Time: Approx. 10 minutes

Distance: 2.73 kilometers from Penang Botanic Gardens to the hilltop

Stations:

Taman Station (base)

Midpoint Interchange Station

Hilltop Station

The cable car project is scheduled for completion by December 2026, followed by a three-month testing phase, including operational trials, before opening to the public.

— BERNAMA