Abstract Traffic congestion has been a serious problem in many cities in Malaysia ever since the intensified industrialisation and urbanisation process began in the 1980s. Frequent traffic congestion has caused the society to suffer efficiency loss in terms of idle time on the road. The promotion of public transport by the government has yet to produce satisfactory results in terms of inducing a significant switch in mode of transport. Thus, this paper intends to study the factors that are related to the choice of mode of transport, particularly in Penang, the second most densely populated state in Malaysia. The limited inhabitable space of this small island state poses an urgent need to discourage the growing use of private vehicle by its residents. The findings of this study aims to provide a better understanding of the determinants of mode choice behavior of road users in Penang and allow for policy makers to formulate a more effective public transport policy in the future.