SEPANG – The Transport Ministry today reiterated its commitment to nurture the capabilities and expertise of local rail industry players through a comprehensive localisation programme.
Minister Anthony Loke said the programme will include more locally built components in railway projects – for example, more participation from local engineering companies in supplying railway components, such as braking systems, as well as involvement in project management.
In his keynote speech at the International Railway Symposium here, he said the government has envisioned for local industry players to actively participate in maintenance, repair and overhaul (MRO) programmes, extending the operational lifespan of rail assets from the current 10-20 years to 30-40 years, thereby positioning Malaysia as the regional rail MRO hub, fostering talent retention and stimulating the country’s economy.
“In our pursuit of self-reliance and sustainable growth, we have implemented a range of initiatives and incentives to ensure that our local rail industry remains at the forefront in serving as the bedrock for our national rail transport, with reduced dependence on foreign expertise.
“Through the comprehensive localisation programme, we aim to guide companies in introducing innovative products, enhancing technological capabilities, improving marketability and significantly increasing local content to a minimum of 45% in identified components by the year 2030.”
He said the government remains committed to making the localisation programme a cornerstone of the Malaysian rail industry, by focusing on value-added localisation, technology transfer, human capital development as well as the application of cutting-edge technology to ensure operational and production excellence.
He added that under the Ekonomi Madani model, the ministry’s focus on transportation aligns seamlessly with the government’s vision, as investment in modern, eco-friendly rail systems resonates with the government’s aspirations.
“Furthermore, the expansion and modernisation of rail infrastructure will not only create job opportunities but also stimulate economic growth, fostering a symbiotic relationship between the rail industry and local sectors, including manufacturing, technology and infrastructure.
“In parallel, the New Industrial Master Plan 2030 (NIMP 2030) assumes paramount significance, acting as a catalyst for economic reform. By introducing advanced technologies and logistics systems, NIMP 2030 will elevate economic complexity, thus propelling the Malaysian rail industry into a new phase of development.
“The potential for high-value employment opportunities is tangible, and our emphasis on enhancing transportation connectivity within Malaysia will reinforce domestic linkages within the broader transportation and logistics sector.
“Moreover, the sustainable expansion of our rail sector embodies inclusivity, guaranteeing accessible, reliable and cost-effective transportation options for all strata of society.”
Loke said he had hoped the symposium would serve as a platform for local industry players to forge robust partnerships, network with fellow stakeholders and original equipment manufacturers as well as fortify their respective businesses and industries.
Also present at the symposium was the ministry’s deputy secretary-general for management, Nor Fuad Abdul Hamid, Malaysia Rail Development Corp chief executive Hasry Harun and Malaysian Resources Corporation Bhd group managing director Datuk Mohd Imran Mohd Salim.
The symposium, which is themed “Sustainable Railway: Connecting Nations, Preserving Futures”, saw almost 400 participants including exhibitions by 20 local and international companies. – November 6, 2023