PENANG, 6 August 2025 – Bank Pembangunan Malaysia Berhad (BPMB) and Hartasuma Ropeways Sdn Bhd (Hartasuma Ropeways), a wholly owned special purpose vehicle (SPV) under Hartasuma Sdn Bhd (Hartasuma), today formalised their partnership for the New Penang Hill Cable Car Project.
The signing ceremony marks the launch of a major infrastructure initiative aimed at improving access to Bukit Bendera, expanding connectivity to the Penang Hill Biosphere Reserve, enhancing the visitor experience, and supporting the state’s long-term tourism growth.
The RM367.2 million financing facility represents a major step forward for the project as it moves towards full-scale construction. As the long-term Concessionaire for the Penang Hill Cable Car Development, Hartasuma Ropeways will be responsible for developing, financing, operating, and maintaining the entire system.
The cable car will serve as an alternative mode of transport to the existing funicular railway, helping to accommodate the sharp increase in visitors to Penang Hill. Designed to carry up to 1,400 passengers per hour in each direction, the system will provide a 10-minute journey from the Penang Botanical Gardens to the summit—offering a more efficient, scenic, and accessible option, especially during peak periods and funicular maintenance downtimes.
Mohamed Nazri Omar, Managing Director, Group Corporate & Investment Banking of BPMB, emphasised the Bank’s pivotal role in bringing the project to life,“as a development financial institution, BPMB is committed to delivering impact capital that drives national development and empowers local economies.
This RM367.2 million financing facility reflects our focus on supporting sustainable tourism infrastructure that generates long-term social and economic benefits. By enabling the Penang Hill Cable Car Project, we are helping to strengthen Penang’s position as a world-class tourism destination and create meaningful opportunities for the community.”
This project also marks BPMB Group’s first blended finance initiative, combining debt financing from BPMB and equity investment through its subsidiary, BPMB Dana Sdn Bhd. The equity portion is further supported by the National Energy Transition Facility (NETF), a strategic allocation by the Ministry of Economy to accelerate Malaysia’s shift to a low-carbon economy.
Backed by a combined equity investment of up to RM30 million structured via Musharakah, this structure demonstrates BPMB’s commitment to innovative financing models that crowd in both public and private capital. The investment also supports three key NETF energy transition levers: Energy Efficiency, Renewable Energy, and Green Mobility.
“We are building more than a cable car. We are building a shared memory – one that will be passed down in stories, revisited in photographs, and treasured in the hearts of those who journey here,” said Tan Sri Ravindran Menon, Executive Director of Hartasuma.
“That is the legacy we are proud to help bring to life. Securing this financing facility is a defining moment — not just for Hartasuma, but for Penang Hill and the many stakeholders who believe in its potential.
It reflects the confidence placed in this project’s vision, its long-term value, and the capability of Hartasuma Ropeways to deliver with discipline and purpose. With this milestone now achieved, our focus shifts fully toward execution — to deliver a transformative, globally admired experience by early 2027. This is a legacy project, and we are proud to carry it forward with the commitment and care it deserves,”Tan Sri Ravindran added.
YAB Tuan Chow Kon Yeow, Chief Minister of Penang, emphasised the broader aims of the project and its wide-ranging implication. “Today’s signing ceremony is more than just a financing milestone—it is a decisive step forward on a project that carries deep meaning for Penang. The Penang Hill Cable Car reflects our vision for sustainable tourism, balanced development, and long-term planning.
With ridership on the funicular surpassing one million this year and major transformation underway at the Astaka, the need for this project is no longer theoretical—it is urgent. The cable car will not replace the funicular, but complement it, alleviating congestion, enhancing the visitor experience, and strengthening our preparedness for peak periods in a sustainable manner.
This partnership between Hartasuma and BPMB allows us to act while momentum is strong and public confidence is high,” he added.
Environmental stewardship is embedded into every phase of the project, from sustainable construction techniques and solar energy integration to ecological safeguards that preserve the hill’s unique biosphere. In addition to its environmental focus, the project is projected to create nearly 400 jobs, foster youth training programmes, and ensure inclusive access for people with disabilities, expanding its positive impact well beyond the tourism sector.
The collaboration between BPMB and Hartasuma demonstrates how impact-driven financing and visionary engineering can come together to build infrastructure that serves both people and planet. As Penang embarks on this exciting new chapter, the New Penang Hill Cable Car Project promises to redefine the visitor experience and strengthen the island’s position as Malaysia’s premier tourism destination where nature, culture, and innovation converge.
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About Bank Pembangunan Malaysia Berhad (BPMB)
Incorporated on 28 November 1973, Bank Pembangunan Malaysia Berhad is a development financial institution wholly owned by Minister of Finance (Incorporated). The Bank holds the highest ‘AAA’ rating from both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad and operates under the regulatory oversight of Bank Negara Malaysia as stipulated by the Development Financial Institution Act 2002.
With Group Total Assets valued at RM34.6 billion as of 31 December 2024, Bank Pembangunan is well-equipped to meet the financing and development needs of Malaysian businesses. Effective 1 May 2025, EXIM Bank and SME Bank became subsidiaries of Bank Pembangunan Malaysia Berhad.
For more information, visit www.bpmb.com.my.
About Hartasuma Sdn Bhd
Established in 1994, Hartasuma Sdn Bhd is Malaysia’s pioneering private sector player in the rail industry, with a proven track record in rolling stock manufacturing, refurbishment, and long-term service support. Over the past three decades, Hartasuma has delivered over 400 cars to major operators including Keretapi Tanah Melayu Berhad (KTMB) and Prasarana Malaysia Berhad for the Kelana Jaya LRT Line, introducing innovative, cost-effective solutions to enhance the nation’s public transportation infrastructure.
In addition to its rail expertise, Hartasuma is the concessionaire for the Penang Hill Cable Car project, a flagship tourism and lifestyle destination that will enhance accessibility to one of Malaysia’s most iconic attractions. Partnering with leading global technology providers, Hartasuma brings world-class expertise and localised capabilities to Malaysia’s transport infrastructure.