Malaysia to lease passenger trains from China in RM10.7bil deal
Published on: Wednesday, August 14, 2024
By:
FMT, Elill Easwaran
Transport minister Loke Siew Fook said nearly 90% of the 68 passenger trains operated by KTMB are manufactured by China Railway and Rolling Stock Corporations.
PUTRAJAYA: Malaysia will enter into a RM10.7 billion leasing agreement with China to acquire an additional 62 passenger trains for Keretapi Tanah Melayu Berhad (KTMB), transport minister Loke Siew Fook said.
The sum will be paid in instalments over a 30-year period.
ADVERTISEMENT
"The actual cost will be finalised after completion of negotiations with the government of China in the near future," he said at a press conference here today.
Also present was economy minister Rafizi Ramli.
He said nearly 90% of the 68 passenger trains operated by KTMB are manufactured by China Railway and Rolling Stock Corporations (CRRC), a state-owned company.
Loke said the government has invested billions of ringgit in rail services, yet utilisation in Malaysia is currently only at 30%.
ADVERTISEMENT
"I hope that this initiative will enhance the reliability of rail services and increase usage, while also managing the financial aspects of procuring the train sets," he said.
Meanwhile, Rafizi said that a comprehensive plan was underway to enhance public transportation in Malaysia, with a special emphasis on improving connectivity in the Klang Valley.
ADVERTISEMENT
The government is targeting improvements in three key areas: bus services, rail networks and ‘first and last mile’ connectivity.
Bus stations in Kuala Lumpur will be upgraded in phases, beginning next year, along with improvements to pedestrian walkways, he said.
Rafizi also said to achieve 80% railway track utilisation in Peninsular Malaysia by 2030, the government has developed a plan to increase passenger train services across Malaysia from 2024 to 2030. This will be implemented in phases.
The government plans to increase the number of passenger trains nationwide to 299, he added.
“The initiatives identified in this plan will be implemented in phases, ensuring an orderly approach aligned with the country’s economic and development goals.
"This effort will be a key focus of the 13th Malaysia Plan, which will be introduced next year."
Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
