The Penang Undersea Tunnel is part of the Penang State Government initiative under the Penang Transport Master Plan. It plans to feature a tunnel connecting Butterworth and George Town in Penang. The project is currently on hold.

The Penang South Islands project (formerly, Penang South Reclamation) will consist of the reclamation of three man-made islands. This project is purported to be utilised in the financing of the Penang Transport Master Plan.