A cable car system complementing the existing Penang Hill Railway was first announced by then Malaysian Minister of Finance Lim Guan Eng in 2019.

[4] Despite this, in 2021, the state's Chief Minister Chow Kon Yeow announced a request for proposal for the project, citing "tremendous" public support.

Six proposals were received by the Penang Hill Corporation (PHC) and in 2022, Malaysian firm Hartasuma Sdn Bhd was awarded the project.

[8][9] To build and operate cable car systems at ecologically sensitive areas, the PHC sought technical expertise from Switzerland and Austria; Penang Hill had been inscribed as a UNESCO Biosphere Reserve in 2021.

[12] The cable car system is designed to cater to a capacity of 1,000 passengers per hour per direction, comprising 50 eight-seater carriages that travel at a speed of 6 m/s (20 ft/s).