Penang Infrastructure Development Corporation Reports 500 Acres Reclaimed at Silicon Island as RM420 Million Bridge Advances

PENANG, Oct. 17 — Reclamation at Silicon Island in Penang has reached 500 acres, and construction of the RM420 million Pan Island Link 2A (PIL 2A) road and bridge connecting Penang Island to Silicon Island is under way, the Penang Infrastructure Development Corporation said. The first bridge section of about 1.2 kilometres is expected to open in December 2028, with the full project targeted for completion in October 2029.

The Penang Infrastructure Development Corporation's chief executive, Datuk Seri Fa Lee Zhan, announced the progress on Oct. 17 at the launch of the Silicon Island Experience Centre. The overall Silicon Island development covers about 2,300 acres, or roughly 930 hectares, and reclamation began in September 2023.

Silicon Island Reclamation Progress

The 500 acres completed as of October represent about 21.7% of the planned island area, equivalent to roughly 202.3 hectares. The Penang Infrastructure Development Corporation provided the following reclamation timeline:

• June 2024: 23 acres
• December 2024: 76 acres
• June 2025: 170 acres
• Year-end 2025: 273 acres
• June 2026: 390 acres
• October 2026: 500 acres

Silicon Island is being developed by Silicon Island Development, a joint venture involving Gamuda and the Penang state government. Gamuda holds a 70% stake, with the state holding the balance. The island lies off Penang Island and is to be linked to the southern area around Permatang Damar Laut and the Bayan Lepas industrial corridor.

PIL 2A Bridge Contract and Construction Schedule

The Penang Infrastructure Development Corporation said the PIL 2A, the main road connecting southern Penang Island with Silicon Island, has been awarded to a contractor at a contract value of RM420 million and is progressing smoothly.

The project is divided into two phases. The first phase runs about 1.5 kilometres, from a main-road traffic-light junction to Jalan Permatang Damar Laut and onward to Silicon Island, and includes the bridge section of about 1.2 kilometres. The broader PIL 2A route is about 5.3 kilometres.

The project uses the balanced cantilever construction method. Piling, pier and superstructure works on both land and reclaimed areas are proceeding on schedule, the corporation said. The first bridge section is expected to open in December 2028 to coincide with the gradual start of major industrial activity on the island, while the full PIL 2A project is targeted for completion in October 2029.

State Officials on Infrastructure and Transport Plans

Zairil, chairman of the Penang state committee for infrastructure, transport and digital, said the development vision for Silicon Island is progressively becoming reality and that the first building has been constructed on the island.

He said the bridge linking Permatang Damar Laut and Silicon Island will serve as a key transport artery that can improve logistics and integrate the island into Penang's existing transport network. The state government also plans to introduce a sustainable transport network, smart traffic management systems, dedicated pedestrian and cycling paths, and resilient digital infrastructure on the island.

Zairil said infrastructure development must balance speed with construction quality, safety and good governance, and that communication with local communities will continue during construction.

Silicon Island Experience Centre Opens

The RM2.5 million Silicon Island Experience Centre was also formally opened. The 2,500-square-foot facility was built in four months and is intended to give government agencies, investors, local communities and media a fuller picture of the development plan and construction progress through dynamic, three-dimensional displays.

Fa Lee Zhan said the centre features an LED scale model controlled and displayed through an IBM system, converting two-dimensional plans and technical blueprints into a more intuitive model of the overall development. Penang executive councillors Wong Hon Wai and Ooi Zhi Yi also attended the launch.

Project Context and Investment Outlook

The PIL 2A link is the principal access route needed to turn reclaimed land into an industrial, commercial and logistics platform. It is intended to connect Silicon Island with Penang's existing road network and the southern industrial area, including the Bayan Lepas manufacturing cluster.

The project is positioned as a new economic growth hub focused on high-value investment and the semiconductor ecosystem. Projections cite potential investment of about RM70 billion to RM75 billion, cumulative economic output of about RM1 trillion to RM1.1 trillion by 2050, and more than 220,000 direct and indirect jobs. These are development projections rather than booked investment or current operating results.

Silicon Island has attracted approximately RM1.9 billion of investment to date, with more than 4,400 local contractors benefiting from development activity. Companies in Taiwan and Japan have shown interest in the project.

Penang's rationale for the project is tied to its established electronics and semiconductor base. The artificial island would add industrial and mixed-use land in a market where large, contiguous sites with direct infrastructure access are difficult to assemble. Silicon Island competes for investment with other Southeast Asian locations offering semiconductor incentives, available industrial land and lower development costs. Execution timing, reclamation and infrastructure costs, environmental and community concerns, and the absorption of new land supply at commercially viable rents and yields remain the main risks.

Sources

• Silicon Island: Silicon Island reclamation and PIL 2A announcement (Oct. 17, 2026)