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Questioning the RM3 million loss claim in Penang tunnel land swap

Published July 25, 2026 at 8:32 AM UTC

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While the MACC officer's testimony points to a RM3 million loss for the Penang government, critics argue that the figure may be misleading and does not account for the full context of the land swap deal. The valuation of RM135 million was conducted at a specific point in time, but property values in Penang have risen significantly, meaning the land could be worth more now. Additionally, the company's claim of RM138 million may include costs beyond the land itself, such as development expenses or compensation for delays. Opponents of the investigation caution that focusing on such a small discrepancy risks derailing a vital infrastructure project that would ease traffic congestion and boost the economy. The undersea tunnel, along with other components of the Penang Transport Master Plan, is estimated to cost billions and could create thousands of jobs. If the project is stalled due to legal battles, the state could lose far more than RM3 million in economic opportunities. Furthermore, the MACC has not yet proven that any law was broken; the difference may simply be a result of negotiation or differing valuation methods. The company involved has maintained that it acted in good faith and followed all procedures. Before condemning the deal, critics say, the court should consider the broader benefits and the possibility that the 'loss' is more apparent than real.