Business news

Search Our News Archive

Cologne central station railway station train 163580

Malaysia Aims to Become ASEAN Train Equipment Manufacturing Hub

January 2019

The Malaysian government is keen to position its self as the rail equipment manufacturing hub in the ASEAN region based on a strong partnership with China, according to recent comments from the Transport Minister. The Transport Minister invited further investments from largest train maker in China, Railway Rolling Stock Corp (CRRC) to meet the requirement of new train sets for railway projects around the country. 

Examples of ongoing/ upcoming projects include Gemas-Johor Baru double-tracking, and light rail transit 3 (LRT3). The completion of the Gemas-Johor Baru electrified double-track rail project will be part of the wider west coast electrified track system (ETS) in four years’ time. The MYR 8.9 billion Gemas-Johor Baru double-tracking project involves the construction of 197 km of double tracks, stations, electric trains, depots, land viaduct, bridges, and electrification and signalling systems.

CRRC’s rolling stock plant in Batu Gajah, Perak was established in 2015 with an estimated cost of USD 97 million,and it is the first and sole train manufacturing centre in the ASEAN region. Over 85% of employees at the plant are Malaysian. This plant currently has the capacity to assemble 200 train cars per year solely meant for the Malaysian market, supplying to Keretapi Tanah Melayu Bhd and Prasarana Malaysia Bhd.

But the potential expansion could double its capacity and the plant could start exporting.  ASEAN countries most are looking to develop their transportation systems resulting in a strong demand for LRT, metro, suburban rail, locomotive and cargo trains.

(Source: The Edge Prop; Malaysian Reserve)