Malaysia and China are in talks to set up a Special Purpose Vehicle (SPV) to manage a programme to strengthen the rail industry, says the Transport Ministry.
The programme involves the leasing of passenger trains, rather than buying them outright.
In a parliamentary written reply dated Nov 5, the ministry said a memorandum of understanding was signed on Apr 16 to enhance cooperation in the railway sector.
“The government has, in principle, agreed to implement the Railway Industry Empowerment Programme through the leasing of passenger trains under a government-to-government arrangement between Malaysia and China.
“Bilateral discussions are underway to establish an SPV to implement the programme,” it said.
The ministry said the establishment of the SPV would take into account the government’s decision that 51% of the shareholding shall be held by a Malaysian government-owned company.
The reply was in response to a question from Yeo Bee Yin (PH-Puchong) on the status of the procurement of electric multiple units through a leasing arrangement, as well as the government’s acquisition of a 51% stake in CRRC Rolling Stock Centre (Malaysia) Sdn Bhd.
CRRC Rolling Stock Centre is currently 70%-owned by CRRC Zhuzhou Locomotive Co Ltd, while the remaining 30% is held by CRRC (Hong Kong) Co Ltd.
The company operates an assembly plant in Batu Gajah, Perak.
It was reported that Malaysia would lease 62 new passenger train sets from China for Keretapi Tanah Melayu Bhd (KTMB) by 2027 at a cost of RM10.7bil over 30 years.
The leasing arrangement includes maintenance, repair and overhaul, and is intended to ensure KTMB has a sufficient number of trains in service.
