By Chan Wei Chao (REN 39846), Team Leader, Bricksmen Team · IQI Realty Sdn. Bhd. · Updated 2 November 2026
Penang is now studying a third bridge, instead of the long-planned undersea tunnel, as its next road link between the island and the mainland. State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari told the state assembly on 2 November 2026 that a conceptual design study for a Penang Third Link Bridge is under way, and its findings will go to the Penang Port Commission for feedback.
Here is what is being studied, why the plan changed, and what it could mean for property on both sides of the channel.
The Third Link at a glance
| Item | Details |
|---|---|
| Original plan | A 6.5 km undersea tunnel from Gurney Drive to Bagan Ajam, part of the Penang Transport Master Plan |
| Now being studied | A bridge design, with a realignment study approved by the state |
| Route | Shifted northwards to fit Penang Port’s expansion plans and avoid disrupting port operations and shipping lanes |
| Aims | Ease congestion around Gurney Bay and nearby areas, and handle fast-growing traffic in North Seberang Perai |
| Assessment | Technical feasibility, cost, people’s mobility needs, shipping safety and navigation, and long-term socioeconomic benefits |
| Design requests | The state wants pedestrian walkways and dedicated cycling lanes |
| Next step | Study findings to be presented to the Penang Port Commission for feedback |
| Cost and timeline | Not announced |
Why the change
The tunnel’s feasibility study was approved by the state in April 2023. In May 2026 Zairil said the state was looking at whether a bridge would be more practical and sustainable, and that coordination with the Penang Port Commission on technical, logistical and navigation issues was ongoing. He also said the state had not made any payment for the project; the RM20 million study-phase entitlement is to be settled through a land swap, and all claims remain under review.
The latest update confirms the state has approved a realignment study based on a bridge concept. Moving the route north is meant to keep it clear of Penang Port’s planned expansion.
Why a road link is still needed with the LRT
Asked whether the planned Mutiara Line LRT bridge to Penang Sentral would be enough, Zairil said the rail bridge carries trains only and will not solve the heavy congestion on the First Penang Bridge. A separate road link is still needed, especially for traffic growth in North Seberang Perai. See our Penang LRT Mutiara Line route map.
Other road project update: North Coastal Paired Road
Zairil also updated the North Coastal Paired Road between Tanjung Bungah and Teluk Bahang, a 10.61 km highway with an 8.41 km land route and a 2.2 km coastal viaduct. The alignment is being reviewed, an environmental impact assessment is under way for part of it, and construction is expected to start in 2026 and finish by 2031. Peak-hour travel time between Tanjung Bungah and Teluk Bahang is expected to fall from 30–45 minutes to about seven minutes.
What it means for property
A third road link would matter most to people who live on one side of the channel and work on the other. On the island, the Gurney and Tanjung Tokong area would be closest to the original tunnel landing. On the mainland, northern Butterworth and North Seberang Perai would gain a second road route to the island besides the First Bridge.
The project is still at the study stage, with no cost, final route or date announced. Buy for what an area offers today; treat any future link as a possible bonus, not a certainty.
Projects near the possible link
| Project | Area | Type | Indicative price | Completion |
|---|---|---|---|---|
| Marina Residence 2 | Butterworth · Teluk Air Tawar | Condominium | RM464,000–RM656,000 | 2028 |
| Silkspring Residence | Butterworth · Raja Uda | Condominium | RM527,650–RM558,650 | Q1 2029 |
| Eight & Eight | Tanjung Tokong | Condominium | From RM691,628 | 2029 |
| The Crown | Tanjung Tokong | Serviced suite | From RM704,000 | Early 2029 |
| Waterstone | Tanjung Bungah | Condominium | RM1,193,000–RM2,405,000 | 2028 |
See more on the Butterworth and Tanjung Tokong area pages.
Frequently asked questions
Is the Penang undersea tunnel cancelled?
Not officially. The state is studying a bridge as an alternative and has approved a realignment study based on a bridge concept. No final decision has been announced.
Where would the third bridge go?
No final route has been announced. The study shifts the alignment north of the original Gurney Drive–Bagan Ajam tunnel route to avoid Penang Port’s expansion area.
Why not rely on the LRT bridge?
The LRT bridge to Penang Sentral will carry trains only. The state says a separate road link is still needed to ease congestion on the First Bridge.
When will the third bridge be built?
No timeline or cost has been given. The study findings first go to the Penang Port Commission for feedback.
Looking for a home in Butterworth or Tanjung Tokong?
I can send the latest price lists for new projects on both sides of the channel. WhatsApp or call +60 10-313 9113.
Sources
- Malay Mail (Bernama): Penang studies Third Link bridge as alternative to undersea tunnel
- Buletin Mutiara: Penang Third Link under review, bridge design considered
- The Star: Penang govt exploring bridge option as alternative to undersea tunnel
This article is general information based on state assembly statements and published reports as of 2 November 2026. The project is at the study stage and plans may change. It is not investment advice; project prices are indicative and depend on availability.