Transport Minister Anthony Loke says MoT’s development allocations focus on building the local rail industry’s ecosystem and supply chain.
KUALA LUMPUR: The Transport Ministry (MoT) has allocated substantial development expenditure to the local rail industry, focusing not only on the use of rail services, but also on developing the sector’s ecosystem and supply chain.
Transport Minister Anthony Loke said the approach took into account the potential of the rail industry’s supply chain to generate significant economic growth for the country.
“Every year, most of the MoT’s development allocation goes to the rail sector, particularly for track construction, followed by the need to purchase rolling stock or trains. Although most of these purchases involve foreign companies, we want them to carry out assembly locally.
“We currently work closely with China’s China Railway Rolling Stock Corporation (CRRC), which is based in Batu Gajah, Perak. When they assemble trains locally, they can source components from local suppliers or industry players,” he said.
He was speaking at a press conference after witnessing the exchange of memoranda of understanding (MoUs) and agreement documents involving government agencies, local industries, educational institutions and international strategic partners, in conjunction with the Transport Expo Asia (TXA) 2026, here, today.
Loke said that major MoT allocations for developing the country’s rail industry included the East Coast Rail Link (ECRL), which costs more than RM50 billion; the Gemas-Johor Bahru Electrified Double-Track, worth about RM10 billion; and the Klang Valley Double Track Phase 2, which involves expenditure of more than RM5 billion.
He added that the ministry hoped that all government investments in developing the country’s rail industry would have a positive impact on local industry players.
“Hopefully, these investments will benefit local companies, generate profits and act as a catalyst for companies such as Railtech (M Rail Technics Sdn Bhd), which provides maintenance services, so that one day we can build a complete ecosystem for the country’s rail industry,” he said.
He also expressed hope that more industry players would collaborate with the academic sector, including local universities, in research and development (R&D) and the commercialisation of research findings.
Commenting on the event, Loke said the signing of 17 MoUs showed that TXA could serve as a platform for industry players to establish strategic partnerships.
“This is certainly something we hope will drive growth in the transport sector, through more strategic collaborations.
“Firstly, to improve the quality of the country’s transport sector, and secondly, to increase the use of technology in the transport sector,” he said.