Penang Hill Corporation (PHC) Begins Phase 2 of Astaka Bukit Bendera Redevelopment

GEORGE TOWN, March 23 – Penang Hill Corporation (PHC) has officially commenced Phase 2 of the Astaka Bukit Bendera redevelopment project, marking a crucial step in transforming the popular food hub into a modern, sustainable complex. The project, which began with the completion of a temporary Astaka in February 2025, will now proceed with the demolition of existing structures to make way for a state-of-the-art facility. The next phase, involving the tender for construction, is expected to be finalized by the end of March 2025, with work beginning in June and full completion projected by the end of 2026.

At the groundbreaking ceremony, Penang Chief Minister YAB Chow Kon Yeow highlighted the significance of this redevelopment for Penang’s tourism industry. “Bukit Bendera has long been a key attraction for both domestic and international visitors. With over 1.8 million visitors last year, upgrading facilities is essential to ensure a comfortable and modern experience. This redevelopment aligns with our commitment to sustainability, accessibility, and the preservation of Penang’s heritage,” he stated. The new complex will feature enhanced dining areas, improved infrastructure, and sustainable green initiatives, including a Green Building Index (GBI) certification.

PHC General Manager YBhg. Dato’ Cheok Lay Leng emphasized the importance of addressing structural and operational challenges in the existing Astaka. “The current facility has served the community since 2012, but it no longer meets growing demands. This transformation will double seating capacity, introduce better ventilation, and provide upgraded waste management systems. We are committed to ensuring business continuity by relocating existing vendors to the Penang Hill Food Alley during construction,” he explained. Additionally, geotechnical improvements, including slope strengthening, will enhance safety and resilience against weather conditions.

The new three-level complex will feature a rooftop viewing deck with panoramic views of the Straits of Malacca, a main dining area accessible from Dataran Bukit Bendera, and additional specialty restaurants to create a diverse culinary experience. With a 52% increase in space, improved facilities such as wheelchair-friendly access, a dedicated baby room, and expanded restrooms will further enhance visitor convenience. These upgrades are strategically aligned with other ongoing developments, including the Penang Hill Cable Car project and the refurbishment of Strawberry Valley.

As the transformation progresses, PHC seeks the cooperation of visitors in adhering to safety guidelines. While construction is underway, tourists can continue to enjoy dining at the temporary food court and other restaurants on the hill. “This redevelopment is more than just a facelift; it is a long-term investment in making Bukit Bendera a world-class destination while preserving its unique charm,” said Dato’ Cheok. With the completion of this project, Penang Hill will offer an upgraded, sustainable, and inclusive experience, solidifying its status as a premier tourism hotspot.