THE redevelopment of Penang Hill Astaka has entered its second phase, marking a major step forward in transforming the iconic food hub into a modern and sustainable dining destination.
According to Penang Hill Corporation (PHC) general manager Datuk Cheok Lay Leng, the redevelopment is structured into three phases.

“Phase One involved the construction of a temporary Astaka, which was completed and has been in operation since Feb 25 this year.

“This milestone sets the stage for a comprehensive transformation of the site.

“The second phase, currently underway, involves demolishing the existing structures to pave the way for the next stage.

“Following this, the tender for the main building’s construction (Phase Three) is expected to be released by the end of March, inviting qualified contractors to bid.
“The primary goal of this redevelopment is to enhance visitor experiences while supporting local businesses and preserving the charm of Penang Hill,” Cheok explained during the groundbreaking ceremony for Phase Two today.
Chief Minister Chow Kon Yeow officiated the groundbreaking ceremony, joined by state Tourism and Creative Economy Committee chairman Wong Hon Wai, state Local Government, Town and Country Planning Committee chairman Jason H’ng Mooi Lye, state Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu, Air Putih assemblyman Lim Guan Eng, Air Itam assemblyman Joseph Ng Soon Siang and Penang Island City Council (MBPP) mayor Datuk A. Rajendran.
According to Cheok, once the tender process is finalised, construction of the main building is scheduled to commence in June 2025, marking a significant step in the project’s timeline.
“Further updates will be provided as the project progresses, with full completion expected by the end of 2026,” Cheok said.
He added that since 2012, Penang Hill Astaka has been a vibrant hub for Penang street food, with many of its operators having deep-rooted family ties to the hill.
“During the redevelopment, PHC has ensured business continuity by relocating vendors to the temporary Penang Hill Food Alley at Dataran Bukit Bendera, which was opened on Feb 25 this year,” he said.
Meanwhile, Chow emphasised that the RM20 million redevelopment, fully funded by the state government, is set to elevate Penang Hill Astaka into a world-class dining destination.

“This transformation will introduce refined dining spaces, upgraded facilities, and a refreshed aesthetic, catering to both local and international visitors.
“With visitor numbers rising, the existing Astaka, which has served the community for over a decade, can no longer meet growing demand.
“Thus, the redevelopment will ensure greater comfort, sustainability, and a dining experience that aligns with modern expectations,” he said.
Chow added that the project is also strategically aligned with other key initiatives on Penang Hill, including the ongoing Penang Hill Cable Car project and the proposed upgrade of the old quarters in Strawberry Valley.
“These efforts, outlined in the Penang Hill Summit Area Concept Master Plan, aim to accommodate the anticipated increase in visitors.
“While modernising the Astaka, the project remains committed to preserving Penang Hill’s status as a Unesco Biosphere Reserve.
“The redevelopment will maintain the current site’s footprint, prioritising sustainability, efficiency, and adherence to Green Building Index (GBI) certification,” Chow stated.
It is learnt that the new Astaka will feature a rooftop viewing deck and activity area, along with improved facilities such as a new garbage centre and food composter room for waste management, a larger centralised washing area, storage space for the vendors and enhanced ventilation for better air circulation.
Additional enhancements, including a dedicated baby room, wheelchair-friendly and senior-friendly facilities, and expanded restroom facilities, will significantly enhance comfort and convenience.
With a 52% increase in total space from 20,316 to 30,989sq ft, the expansion will revitalise Dataran Bukit Bendera, strengthening its role as a focal point in the summit area.
To elevate the offerings and create a more diverse dining experience, seating capacity will nearly double from 280 to approximately 530. The main dining level will also be seamlessly accessible from Dataran Bukit Bendera.
Story by Riadz Akmal
Pix by Siew Chia En
Video by Alissala Thian