Malaysia to Lease $2.4 Billion in Passenger Trains from China

Malaysia plans to lease 62 new passenger train sets worth $2.4 billion from China for state rail company KTMB. The deal, to be finalized after negotiations, includes a 30-year lease with maintenance services. The arrangement aims to reduce acquisition times and enhance track utilisation amid local service challenges.

Malaysia is set to pursue a $2.4 billion deal to acquire new passenger trains for its state rail company, Keretapi Tanah Melayu Berhad (KTMB), through a leasing agreement with China, Transport Minister Anthony Loke announced on Wednesday.

During the first phase from 2024 to 2027, the government plans to obtain 62 new passenger train sets, costing an estimated 10.7 billion ringgit ($2.4 billion). The cost will be paid in installments over a 30-year lease period. The final cost will be determined after negotiations with the Chinese government are complete, Loke revealed. The lease will also cover maintenance, repair, and operations services by the train suppliers.

Loke noted that nearly 90% of passenger trains in KTMB's network were manufactured by China Railway Rolling Stock Corporation (CRRC). The government expects the deal to shorten acquisition times and improve track utilisation, addressing urgent local service upgrades due to availability and reliability issues.

(With inputs from agencies.)