Malaysia and China are discussing a special-purpose vehicle for passenger train leasing, with Malaysian firm to hold 51% stake in rolling stock assembler.
KUALA LUMPUR: Malaysia and China are in bilateral discussions to form a special-purpose vehicle for rail industry development through passenger train leasing.
The Transport Ministry confirmed the government has agreed in principle to implement the project via a government-to-government passenger train leasing method.
A Malaysian government-owned company will hold 51% equity interest in the rolling stock assembler under the SPV arrangement.
The ministry was responding to a parliamentary query from Yeo Bee Yin regarding updates on the electric multiple unit sets leasing plan approved by the Cabinet on August 14, 2024.
The government signed a memorandum of understanding with China on strengthening railway cooperation on April 16, 2025 as project commitment.
CRRC Rolling Stock Centre currently operates an assembly plant in Batu Gajah, Perak with 70% ownership by CRRC Zhuzhou Locomotive Co Ltd.
The remaining 30% stake is held by CRRC (Hong Kong) Co Ltd.
Malaysia plans to lease 62 new passenger train sets from China by 2027 at RM10.7 billion cost for 30 years for Keretapi Tanah Melayu Bhd.
The leasing arrangement includes maintenance, repair and overhaul services to ensure sufficient trains in service for KTMB. – Bernama
