Kuala Lumpur — Malaysia is building Andaman Island, a $14 billion mega‑project off the coast of Penang, designed to provide luxury housing, retail, and office space across 760 acres of reclaimed land. Connected to Penang Island by two bridges, the development aims to house 16,000 residents and bolster Penang’s economic growth.
The project comes with echoes of Forest City, Malaysia’s infamous $100 billion reclamation venture in Johor that stalled and became known as a ghost town. Unlike Forest City, Andaman is smaller in scale, locally funded by E&O Berhad, and positioned as an extension of Penang’s already thriving property market. Reports suggest several condo towers have already sold out, signaling strong demand.
Technically, the reclamation involves massive sand dredging, vertical drains, and rock bunds to stabilize the island against waves and potential tsunamis. Engineers remain confident, with construction progressing steadily and buildings already rising.
For International Expose, Andaman Island reflects Malaysia’s ambition to expand its global footprint in luxury real estate and infrastructure. Yet the question lingers: will it succeed as a sustainable urban hub, or risk becoming another cautionary tale of overreach?
