Look at long-term value of the ECRL

I READ with interest the StarBiz7 article titled “ECRL – hardly a gravy train” (The Star, Nov 7), which frames the East Coast Rail Link (ECRL) strictly through a narrow lens of direct commercial profitability and short-term debt recovery.

Judging mega-infrastructure projects primarily by line-item balance sheets fundamentally misinterprets the economic and social purpose of nation-building assets.

Globally, public transport infrastructure is treated as a public good – a driver of broad economic enablement rather than a standalone profit centre.

Evaluating transport projects strictly on direct financial returns (FIRR) fails to capture their true value to a nation.

> China’s high-speed railway (HSR) benchmark: Ex-post Economic Internal Rate of Return (EIRR) estimates for major transport projects in China consistently range between 8.5% and 10.9%, vastly outstripping their direct financial returns. The real return manifests in regional integration, reduced transaction costs and expanded productivity across entire economic corridors.

> Western nations: Transit networks across North America and Europe operate under public subsidies precisely because their economic dividends, reducing congestion, lowering logistics overhead and expanding labour pools far outweigh farebox revenues.

Studies sponsored by the East Coast Economic Region (ECER) highlight concrete growth trajectories for the East Coast.

> Regional GDP expansion: The ECRL is projected to add 1.5% to regional GDP. Based on 2025 baseline growth rates, Kelantan, Pahang and Terengganu are positioned to achieve significantly higher growth rates than historical trends.

> Industrial migration and cost advantage: Operating and establishment costs on the East Coast are substantially lower than in the Klang Valley. The ECRL bridges these regions directly to Kuantan Port, making industrial relocation highly attractive for manufacturing and export-oriented firms.

> Tax incentives: Federal and regional tax breaks designed for companies setting up in the ECER further amplify this competitive edge, accelerating foreign direct investment (FDI) and industrial park utilisation.

The long-term value of the ECRL extends into spatial demographic balance and public safety.

> Permanent local employment: Industrial migration to the East Coast creates high-quality, permanent jobs in towns along the rail line. By allowing residents to secure meaningful employment in their home states, the project addresses the root driver of economic migration to the West Coast.

> Relieving LPT and Karak highways: Creating local jobs and offering an efficient rail alternative directly relieves severe traffic congestion along the East Coast Expressway (LPT) and Karak Highway, reducing travel time, fuel burn, road wear and holiday accident rates.

Evaluating the ECRL strictly as a commercial asset misses the forest for the trees.

Infrastructure is an enabler of structural regional transformation, economic equity and public welfare, not a short-term balance sheet play.

TENGKU AKBAR TENGKU ABDULLAH

Seri Kembangan, Selangor