Malaysia is set to embark on a substantial RM10.7 billion leasing deal with China to acquire new passenger trains for Keretapi Tanah Melayu Berhad (KTMB), Transport Minister Anthony Loke announced today.
The agreement, spanning from 2024 to 2027, will see the acquisition of 62 new train sets. The cost will be covered in instalments over a 30-year lease period. Loke stated that the exact cost will be determined once negotiations with the Chinese government are finalised. The leasing arrangement will also include maintenance, repair, and operational services provided by the train suppliers.
Currently, nearly 90 per cent of KTMB's passenger trains are manufactured by China Railway Rolling Stock Corporation (CRRC). Loke explained that this new deal aims to accelerate acquisition times and enhance track utilisation, addressing urgent needs for service upgrades due to issues with availability and reliability.
The leasing deal is expected to significantly improve local train services, which are crucial for Malaysia's public transport infrastructure. The government's move reflects its commitment to modernising the rail network and improving passenger experience.
