The Business Times
Asean Business logo
SPONSORED BYUOB logo

Malaysia open to extending China-led rail project to Thai border

Published Thu, Mar 28, 2024 · 02:18 PM

MALAYSIA’S government has said it would consider extending a US$10 billion China-led rail project to its border with Thailand to boost economic ties between the South-east Asian neighbours. Part of China’s Belt and Road Initiative, the 665-kilometre, RM50.27 billion (S$14.3 billion) railway is on track to connect the east and west coasts of peninsular Malaysia by the end of 2026. Malaysia’s Transport Minister Anthony Loke said on Wednesday (Mar 27) the government was open to proposals to extend the track to the border with Thailand, for further integration into existing railway networks or future infrastructure developments. He did not provide further details. “When the connectivity of railway tracks between Malaysia and Thailand can be modernised and improved, the movement of cargo and passengers between the two countries will become faster, thus stimulating economic growth,” Loke told Malaysia’s Senate. A spokesperson for Thailand’s transport ministry did not immediately respond to a request for comment. The original rail link was first proposed in 2017 and is being constructed by the Malaysian unit of China Communications Construction. It was 60 per cent complete as at March, according to Bernama state news agency. Thailand also has plans to invest in a massive land bridge project in the country’s south to boost growth and global trade. The bridge would bypass the congested Strait of Malacca, a narrow sea lane between Malaysia and Indonesia. “Rather than a zero-sum game of competition, (Malaysia’s) ministry of transport is confident that Malaysia and Thailand can explore closer cooperation in the areas of transport and national development for long-term mutual benefit,” Loke said. REUTERS

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Asean

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here