PAC seeks clarity in RM10.7bil KTMB train leasing deal with China
The proposal, first announced in August last year by the government, involves 62 new electric multiple unit (EMU) train sets for KTMB under a Government-to-Government (G2G) deal with China.
The estimated cost is RM10.7 billion over 30 years, payable in instalments, with the first phase scheduled for 2024 to 2027.
PAC chairman Datuk Mas Ermieyati Samsudin said the committee concluded that the figure was only an estimate and no final contract had been signed.
"As of Feb 12, 2025, PAC's proceedings found that the procurement process for electric trains had not yet been finalised and was still at the stage of study, refinement and ongoing negotiations with central agencies, including the Finance Ministry," she said in a press conference at parliament today.
She said the committee had invoked its powers to examine the matter and held proceedings on Feb 12 with three key witnesses, namely, the Transport Ministry's secretary-general, the Railway Asset Corporation's CEO and Keretapi Tanah Melayu Bhd (KTMB)'s group CEO.
The committee said leasing was chosen due to limited government funds and the urgent need to address high demand and existing train shortages.
CRRC of China was identified as supplier for the first phase, based on technical expertise and its assembly plant in Batu Gajah, Perak.
PAC recommended seven improvements, including a Public-Private Partnership Unit-led cost-benefit analysis comparing leasing and purchase, clear justifications for each procurement phase, and government ownership of at least 51 per cent in CRRC Rolling Stock Centre (Malaysia).
It also urged clarity on payment currency, maintenance obligations, compliance with safety standards, and the inclusion of local companies through open tenders.
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