
First ECRL electric trains and locomotives to arrive by end-2024
Malaysia Rail Link (MRL) confirmed the delivery, which will support commissioning tests ahead of passenger and freight operations starting in June 2026.
MRL chief executive officer Datuk Seri Darwis Abdul Razak stated that an additional nine EMU sets and 18 locomotives will be delivered between April and May 2025.
'In total, there will be 11 EMU trains for passenger services and 20 locomotives for freight operations,' he said during the launch of the 2025 POLYCC TVET Mega Fiesta at Sultan Mizan Zainal Abidin Polytechnic (PSMZA).
Darwis also announced that MRL will send 109 students from higher learning institutions to China for the ECRL Industrial Skills Training Programme (PLKI-ECRL) between August and October this year.
Trainees are guaranteed jobs with the ECRL project, offering a starting salary of RM3,000.
'In May, we sent 101 students from polytechnics and MARA institutions for the same programme. PSMZA alone had around 60 students selected,' he added.
The collaboration between TVET institutions and industry partners is vital in developing a skilled workforce ready for global challenges. – Bernama
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Malaysian Reserve
2 hours ago
- Malaysian Reserve
ECRL: Remapping the nation's growth engine
It would reshape Malaysia's logistics corridors, attract new investment and rebalance regional development by HIDAYATH HISHAM & SUFEA SALEHUDDIN THE East Coast Rail Link (ECRL) is shaping up to be more than just a railway. Beyond connecting the east coast to Selangor, the project is being positioned as a force of national growth — one that could reshape Malaysia's logistics corridors, attract new investments and rebalance regional development. As of June, the 665km alignment has reached 82.45% completion, according to Transport Minister Anthony Loke. Yet, experts say the railway's true success will hinge on more than construction milestones. (graphic: TMR) Coordinated Strategy, High-impact Zones Investor activity along the ECRL corridor is gaining tangible momentum, backed by confirmed projects and rising interest, particularly in Pahang and across the East Coast Economic Region (ECER), according to the Malaysian Investment Development Authority (MIDA). 'This growing momentum is the result of deliberate strategy, strong inter-agency collaboration at both federal and state levels, and tangible infrastructural progress,' MIDA said in a written statement to The Malaysian Reserve (TMR). MIDA said the project remains on track to reach 90% completion by year-end, with full operations expected in 2027. The progress has catalysed logistics expansion, industrial development and rising land values. It has established a dedicated task force with the ECER Development Council (ECERDC) and China Communications Construction Co Ltd (CCCC) to promote and facilitate Economic Accelerator Projects (EAPs) along the corridor. These include transit-oriented developments (TODs), industrial parks and logistics hubs in key areas. Nearly RM20 billion has been invested in Kuantan and the Malaysia-China Kuantan Industrial Park (MCKIP), focusing mainly in high-value manufacturing, processing and logistics. The Malaysia-China Kuantan International Logistics Park (MCKILP) is expected to bring in up to RM17.61 billion in foreign direct investment (FDI) and create 20,000 jobs in industries like light and medium manufacturing, warehousing, housing, petrochemicals, steel, palm oil processing, e-commerce and marine engineering. Most investment is focused in high-tech manufacturing, logistics and transport, tourism, hospitality and commercial services. MIDA said it supports these sectors through investor facilitation, feasibility guidance and close engagement with local and state authorities. 'While initial investments have focused on developed areas like MCKIP, the broader ECRL corridor is envisioned to enable balanced development, expanding opportunities to less-developed areas in Terengganu, Kelantan and central Pahang.' Sector Priorities, Catalytic Zones MIDA is focusing on key industries like logistics, green technology, and agro-based sectors near transit-oriented developments (TODs). The ECRL aims to boost east-west trade and speed up industrial growth. Economic Accelerator Projects (EAPs) are open to all investors and concentrate development within a 15km radius or 30-minute drive of ECRL stations. The main focus areas are Kuantan Port City for logistics and manufacturing and central Pahang towns such as Temerloh and Bentong for industrial parks and TODs. Other sites include Kuala Terengganu, Cherating, Kota Sultan Ahmad Shah (Kota- SAS) and Bandar Permaisuri, all under a broader Integrated Land Use Master Plan (ILUMP). 'A new international airport will be developed in the Cherating area. The Cherating Station, currently passenger-only, is planned by the Pahang state to add cargo facilities to support the growing aerospace industry nearby,' MIDA said. KotaSAS, meanwhile, is being developed as a new township and administrative capital for the state government. It currently serves passengers only. Incentives, Promotion and Long-term Positioning MIDA globally promotes key zones like Kuantan Port City under the Belt and Road Initiative (BRI) and offers full support to investors, including site scouting, licensing, land access, incentives and utilities. It coordinates closely with agencies like the Town and Country Planning Department (PLANMalaysia) and state governments to ensure infrastructure and talent readiness. Under the BRI, MIDA promotes the ECRL as a key advantage for investors, linking Port Klang and Kuantan Port to enhance trade by avoiding congested sea routes. Incentive Framework Boosts Enabling Environment The agency said the ECRL is a major incentive, offering strong connections between Malaysia's east and west coasts. It is also collaborating with government agencies to develop competitive incentive packages for EAPs. The government plans to launch a New Investment Incentive Framework in the third quarter of 2025 (3Q25), aimed at encouraging high-value activities and reducing economic differences between regions. 'ECRL aims to boost economic growth, create jobs and support balanced regional development, but its success relies on fair benefit distribution and effective integration with local economies.' ECRL achieves another milestone with the record-breaking breakthrough of the 16.4km Genting Tunnel. Loke (centre) says the completed tunnel is expected to be the longest railway tunnel in South-East Asia Railway History Hints at ECRL's Future Impact Monash University Malaysia senior economics lecturer and Honours/Postgraduate Diploma director Dr Audrey Siah pointed to early railway stations like Taiping in Perak, helped form industrial clusters and boosted nearby towns such as Matang. Citing her co-authored study Colonial Origins of Agglomeration, she said the ECRL could create similar economic ripple effects as past railway developments. 'It is essential to address this potential backwash effect, where areas with stations attract economic resources such as labour, capital and trade, at the expense of areas without stations,' she told TMR. Smaller towns like Kuala Lipis, Jerantut, Kuala Krai and Gua Musang could be developed into feeder points for ECRL-linked logistics. For example, the timber and wood products manufacturing and the agro-based food processing industries in Mentakab, Pahang, could flourish due to its access to cities and ports on the West Coast. Siah said improved connectivity will reduce logistics costs, boost investor confidence and make the East Coast more attractive for sectors such as agriculture, manufacturing and export logistics. While ECRL's strategic link between Kuantan Port and Port Klang may appeal to Chinese investors, deeper BRI integration must not sideline local firms. 'If foreign firms dominate business operations and supply chains, Malaysia risks missing critical opportunities for SME participation and local capacity building. 'Another potential risk is an eventual influx of cheaper Chinese goods and services, which could undercut — and ultimately stunt — the growth of Malaysian SMEs in competing sectors,' Siah said. Still, she believes the benefits outweigh the risks. 'To fully benefit from the ECRL, SMEs should position themselves near key stations or industrial hubs along the rail corridor to take advantage of improved connectivity and reduced transportation costs. 'These efforts, part of the ECRL-EAP, offer significant opportunities for SMEs to participate in and benefit from the broader economic transformation,' she added. To benefit from ECRL, SMEs should set up near key stations or industrial hubs along the rail line, says Siah (Source: Kuantan's Strategic Anchor The Kuantan segment of the ECRL stands out as a strategic linchpin in Malaysia's east-west connectivity. Universiti Malaya (UM) Department of Finance, Faculty of Business and Economics Assoc Prof Dr Mohd Edil Abd Sukor believes the corridor's development hinges on how well its infrastructure is integrated with freight logistics and industrial nodes — particularly Kuantan Port and MCKIP. He said Kuantan Port City 1 and 2, and Cherating are strategically positioned to drive regional growth by enhancing mobility, boosting tourism and strengthening Kuantan's role as a key logistics hub linked to Kuantan Port and MCKIP. While the ECRL's capital cost remains significant, Mohd Edil said the long-term returns can be realised if economic activity is stimulated around key freight corridors. Freight operations at Kuantan Port City 2, in particular, are projected to be a major revenue source. 'Over time, the multiplier effects on employment, local businesses and real estate are expected to support a positive return on investment,' he told TMR. But for this to materialise, he said the infrastructure must be closely linked to surrounding industrial activity, with clear freight incentives, efficient customs procedures and strong intermodal planning. Balancing Development, Managing Fiscal Risk Beyond the East Coast, Mohd Edil sees the ECRL as an opportunity to address Malaysia's persistent east-west economic imbalance. By connecting less-developed states to key urban markets, the rail line could attract capital into logistics, tourism and manufacturing in areas long neglected by mainstream investment flows. Improved logistics connectivity lowers the cost of moving goods, widens access to urban markets and increases investor confidence. For governments, this can translate into higher tax revenue, while firms benefit from reduced entry barriers. Over time, Mohd Edil expects private investment to cluster around stations such as Kuantan Port City 2 — particularly in sectors with existing momentum such as heavy industry, warehousing and real estate. However, he warns of key macroeconomic risks. 'One of the primary risks is its heavy reliance on foreign loans, particularly from a Chinese bank serving as the project's main financier. This exposes Malaysia to currency exchange risk, especially if the ringgit depreciates against the yuan or US dollar,' he said. Even if the loan terms are favourable — such as longer maturities and relatively low interest rates — Malaysia remains vulnerable if revenue projections underperform or freight traffic fails to materialise at scale. In such a case, debt servicing could strain public finances. Mohd Edil urged policymakers to manage currency and operational risks through efficiency, industrial integration and robust oversight to ensure that project benefits are delivered on the ground. Mohd Edil sees the ECRL as an opportunity to address Malaysia's persistent east-west economic imbalance (Pic courtesy of Mohd Edil Abd Sukor) Financial Inclusion, Regional Capital Market Spillovers Beyond infrastructure and logistics, ECRL could unlock broader financial participation in rural areas. 'As commerce and mobility increase, financial institutions may be more inclined to expand their branch networks or digital outreach in these areas, especially in underserved towns, improving access to credit and savings facilities for local entrepreneurs, smallholders and informal businesses,' Mohd Edil added. This shift could stimulate asset ownership, financial literacy and broader participation in Malaysia's formal economy, especially in areas like Jerantut, Kuala Lipis and interior Kelantan. At the national level, ECRL also provides opportunities for capital markets. As a BRI flagship, the project signals Malaysia's readiness to support large-scale infrastructure finance — including sukuk issuances, public-private partnerships and cross-border deals — making it a platform to attract international investors into BRI-linked projects. With the right incentives, ECRL could trigger financial innovation, ranging from syndicated infrastructure bonds to new financing models via Labuan, Sabah. Building Rail Talent Through Local Upskilling ECRL's operation phase is expected to create about 1,800 jobs. In May, Loke said ECRL Operation Sdn Bhd, a joint venture (JV) between Malaysia Rail Link Sdn Bhd and CCCC, will manage the workforce, with operations scheduled starting in January 2027. He said at least 80% of the workers will be Malaysians in technical and operational roles. To meet this demand, the government is expanding the Program Latihan Kemahiran Industri ECRL (PLKI-ECRL) to include operations and maintenance (O&M) training. Launched in 2017, the programme is entering its next phase, targeting 3,200 local talents specifically for O&M roles. This year, 210 Malaysians will undergo a one-year intensive programme in Liuzhou, China, with the first 102 trainees having departed in May. Trainees will be prepared for roles including assistant station attendant, signalling technician, assistant train driver, overhead line technician, and emu maintenance technician. Loke also guaranteed employment for all PLKI-ECRL upon completion of the programme. 'The effort to develop the capability and competence of our local youth is a priority, so that Malaysia will not have to depend on foreign expertise in the long term,' he said. CCCC has contributed RM12 million to support the training programme, which forms part of its investment in developing a sustainable and localised rail workforce. From freight logistics and financial inclusion to SME development and industrial spill-overs, the ECRL's impact will depend on how well it is integrated into the real economy — and whether the gains it promises reach surrounding communities. This article first appeared in The Malaysian Reserve weekly print edition


The Star
3 days ago
- The Star
The rise of e-wallets in Asean
E-WALLETS have been around for more than 25 years, ever since Coca-Cola introduced its SMS-based vending machine payments in 1997 and emergence of PayPal in 1998. In Malaysia, cash was king, until the unthinkable happened—a pandemic that stopped the world in its tracks for two years. Within that timeframe, Covid-19 caused not only a major shift in how people lived but their attitudes as well. According to a survey done by PwC Malaysia in September 2021, during the Covid-19 pandemic lockdown, it charted that the average transactional frequency done on e-wallets almost doubled as compared to May 2018, with weekly transaction values increasing more than three-fold. In fact, the Visa Consumer Payment Attitudes Study 2024 showed a surge in e-wallet adoption across the region in 4Q2023, with 79% of respondents reporting they use this payment method, outpacing cash (77%), debit and credit cards (70%) and Internet banking (70%). Furthermore, the region's digital economy made good progress last year. The 2024 e-Conomy SEA report showed a 15% increase year-on-year (YoY) of US$263bil for gross merchandise value, a revenue of US$89bil—a 14% increase YoY, and profits of up to US$11bil—a 24% increase year YoY. However, even with such glowing reports, there is still the disconnect between the high digital transactions and still trails behind the more developed international countries when it comes to providing basic financial services. An article in Asian Banking & Finance stated that in countries, such as the Philippines, Vietnam and Indonesia, more than half of their population were still unbanked or underbanked. Even so, a Bain & Co report remained positive that those who are underbanked are the target market. Although they do not have full access to traditional financial services, their predilection for technology, as shown with the high smartphone penetration within the region, could be the answer. Technology enabled business models would most likely bethe best way to serve this segment, which creates new market opportunities. The report stated that this segment is the biggest potential and the true growth engine in digital financial services. Consumer tech platforms are ideally positioned to capture a larger share of the underbanked segment due to their extensive, growing, and engaged customer base. These platforms can enhance customer lifetime value by offering a more comprehensive range of consumer services. But the potential of these transactions need not be confined within the countries they operate in. Thanks to the Regional Payment Connectivity (RCP), which was initiated by the central banks of Indonesia, Malaysia, Philippines, Singapore and Thailand in 2022, cross-border transactions allow payments to be made in local currencies. It also cuts down the costs and time of performing that transaction in the conventional way. This solves the long-standing problem of having to rely on multiple banking intermediaries and the use of the US dollar. It also makes the transaction more affordable as it skips intermediary fees and long processing times to clear the payments. It also bypasses the regulatory differences that would have hampered the development of a unified payment system and the limited interoperability between different banking systems. According to a Juniper Research report, such connections allow e-wallet transactions for cross-border payments, with tourism and remittances being the major consumer drivers. From a business standpoint, the benefits of instant payments are less apparent. The report noted that challenges still persist, which include fluctuating exchange rates and regulatory discrepancies between jurisdictions. In a blog post, ASEAN+3 Macroeconomic Research Office mentioned the rising importance of using Quick Response (QR) payments. Popular during the pandemic, this form of payment gained widespread appeal, even over the near field communication (NFC) system and has integrated into the systems of participating central banks to standardise national payment systems. Asean countries that have embedded this form including Cambodia's KHQR, Indonesia's QRIS, Lao PDR's Lao QR, Malaysia's DuitNow, the Philippines's QR Ph, Singapore's PayNow, Thailand's PromptPay and Vietnam's VietQR. Even Japan is reported to consider integrating its QR payment system into RPC, with full implementation by the end of 2025. Locally, Bank Negara Malaysia (BNM) launched the Interoperable Credit Transfer Framework in 2019, which allows significant progress in the nation's efforts to migrate to e-payments and reduce the usage of cash. The framework establishes a shared payment infrastructure that connects bank and non-bank accounts while managing the resultant risks. As Tan Sri Dr Zeti Aziz said in her keynote address during the Eminent Persons' Dialogue, entitled Asean Financial Integration in a Multipolar World on Apr 9, more than 20 years ago, the pivotal decision was made for Asean economies to come together and pursue regional financial integration. She said the drive for enhanced regional financial integration was aimed at enabling the efficient channeling of funds within the region for reinvestment. It was anticipated that this would lead to more stable financial flows, helping to counteract destabilising financial movements. 'Being high savings economies, it would also facilitate some part of our domestic savings to be reinvested in the region. Additionally, it would also support the development of domestic financial markets, enhance the overall resilience of regional financial systems and contribute towards the financing of growth and development in the region,' she said. The Asean region may not be ready for a single unified currency like the European Union, but the economic interdependence between each state can be realised with the cross-border transactions afforded by linked e-payment systems.


New Straits Times
4 days ago
- New Straits Times
e-Pineapple system to drive agro-digital shift
KOTA SAMARAHAN: Sarawak's Food Industry, Commodity and Regional Development Ministry launched the e-Pineapple System today to support more accurate and efficient decision-making. Its minister, Datuk Seri Dr Stephen Rundi Utom, said Sarawak was ready to face the challenges of digital transformation in the agro-food sector, in line with the agenda of the Sarawak Digital Economy Strategy. "We at the ministry is striving to introduce digitalisation in all aspects of the industry," he said, adding that with the use of big data and analytics, the ministry could make more accurate and efficient decisions, from farm management to pineapple product processing. He said researchers and educators played a very big role in providing the data and knowledge needed to ensure that every decision taken is based on the latest evidence and innovation. "With this system, project administration becomes more efficient — farmer and production data can be collected directly and project monitoring can be carried out more transparently and quickly. "This system will become the best example for other states." He said researchers, educators, planters, pineapple product entrepreneurs as well as companies had an important role in boosting the industry.