16/05/2026

First page Previous page 13 Next page Last page

BIZ & FINANCE SATURDAY | MAY 16, 2026

RAC monetising railway land to reduce reliance on govt funding

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia is monetising railway land through transit-oriented developments (TODs) and private-sector part nerships to reduce reliance on government spending on transport infrastructure projects. Transport Minister Anthony Loke said the Railway Assets Corporation (RAC), the custodian of Malaysia’s railway assets and railway land nationwide, has been using returns generated from railway-linked developments to upgrade transport assets without requiring allocations from the Finance Ministry. He said the approach reflects a longer-term strategy to improve the commercial sustainability of Malaysia’s rail ecosystem by unlocking the value of strategically located railway land through integrated urban developments linked to KTM stations and rail corridors. “Since a few years ago, my goal with RAC has been to maximise its value, and we are trying to find more creative approaches by working with the private sector,” he told a press conference after the launch of the Segambut Utara Railway Station yesterday. Loke said RAC has adopted a model that allows private developers to integrate projects directly with railway infrastructure, while RAC benefits from the increased value and commercial returns generated from the surrounding developments. According to Loke, the government’s key condition for such projects is that they must not involve public spending, with development costs fully borne by private sector partners. “We have upgraded lifts and stations, improved the toilets, and ensured that railway assets are in better condition, all without requiring allocations from the Finance Ministry. “So, we generate our own income, and we reinvest it for the use and improvement of the railway system. That is RAC’s role,” he said. Loke said RAC holds one of the country’s most strategic land portfolios as the agency responsible for railway assets and rail corridors throughout Malaysia, many of which are located within densely populated urban areas with significant development potential. “Once it is developed, the land’s

o Loke: Custodian of rail assets using returns generated from developments to upgrade transport facilities value can be unlocked. RAC also receives returns when the area is developed, so of course, RAC benefits from the increased value of the land,” he said. Loke said the proceeds generated from these developments are channelled back into upgrading railway infrastructure and facilities nationwide. “When we receive those returns, the money goes into RAC’s account. RAC then uses the funds to upgrade railway assets across the country,” he said. He cited earlier examples such as Abdullah Hukum and Kajang 2 stations, which were integrated with surrounding private developments linked to the KTM network. Loke said railway-linked developments also create broader economic spillover effects, including higher land values, socio-economic activity and increased ridership for Keretapi Tanah Melayu Bhd (KTMB). “When a project or land is developed, it creates value, generates socio-economic development, and for KTMB, it also means more passengers,” he said. “When we unlock all these values, the benefits generated are significant for all parties, including the wider community.” Loke said integrated station developments not only improve rail accessibility but also support higher ridership by allowing residents to

Loke says integrated station developments can improve connectivity, increase ridership and reduce reliance on private vehicles.

ridership of nearly 580,000. According to Loke, the station’s capacity is expected to help reduce reliance on private vehicles while improving the reliability and attractiveness of public transport services. “Kuala Lumpur currently faces the entry of more than one million vehicles daily, and dependence on private vehicles contributes not only to traffic congestion, but also air pollution, rising fuel costs and emotional stress among road users.” He said that every commuter who shifts to public transport contributes positively to reducing carbon emissions, lowering accident risks, and improving urban quality of life. “Every new station should be viewed holistically as part of a comprehensive transport ecosystem and not merely as a stop alone.” Loke said the Transport Ministry will continue to focus on developing an integrated, reliable and sustainable rail system in line with the National Transport Policy 2030.

over to the government,” he said. He said the station would ultimately belong to Railway Assets Corporation (RAC) as the owner of the rail assets, while operations would be managed by KTMB. “The ministry hopes to expand similar development models in the future by encouraging new property projects to integrate directly with the national rail network,” he said. Loke said the Segambut Utara station is expected to directly benefit a catchment population of nearly 90,000 residents across Segambut, Kepong, Jinjang, and Mont Kiara, with projected population growth in the surrounding areas exceeding 100,000 in the future. “The station’s planning was based on actual population movement patterns, daily travel behaviour and long-term development potential in the surrounding areas.” He said the station can accommodate up to 8,000 passengers per hour in each direction during peak periods, with a projected annual

connect directly to public transport networks from nearby residential and commercial projects. “For those living nearby, or those staying in the new apartments, once they reach this station, they will have direct access to their buildings,” he said. The Segambut Utara station was developed with an investment exceeding RM39 million through a collaboration among Railway Assets Corporation (RAC), the owner and manager of national rail assets; IDP Industrial Development Sdn Bhd, a subsidiary of UOA Development Bhd, as project developer; and KTMB, the rail service operator. Loke said the Segambut Utara station had been under discussion for several years before finally being launched yesterday, with the development cost of more than RM39 million fully borne by the private developer. “So, the government does not spend anything on this station. They need to build this station and hand it

Education retains its importance in the Malaysian landscape for parents, students and stakeholders. The changes are fast paced with new developments in new fields of study such as cybersecurity, data protection, augmented and virtual reality, machine learning in education, digital education and artificial Intelligence. Leading the way are universities, who are invited to showcase their latest programmes, curriculum and content in our Education Focus for 2026.

thesun.my

Made with FlippingBook - Online magazine maker