Malaysia to acquire trains through $2.4 billion leasing deal with China

KUALA LUMPUR: Malaysia plans to pursue a $2.4 billion deal to acquire new passenger trains for state rail company Keretapi Tanah Melayu Berhad (KTMB) via a leasing agreement with China, the transport minister said on Wednesday.

In the first phase from 2024 to 2027, the government aims to acquire 62 new passenger train sets at an estimated cost of 10.7 billion ringgit ($2.4 billion) to be paid in installments over a 30-year lease period, Minister Anthony Loke told reporters.

"The actual cost will be finalised following the completion of negotiations with the Chinese government in the near future," Loke said, adding the leasing costs would include maintenance, repair and operations services by the train suppliers.

Almost 90% of passenger trains currently in KTMB's network were manufactured by China Railway Rolling Stock Corporation (CRRC), Loke said.

The government says the deal would help to cut down acquisition times and improve track utilisation, with local services requiring urgent upgrades due to availability and reliability challenges, Loke said.