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Transportation Technology – Rail


The rail sub-sector subsumes activities in rail design, manufacturing, and assembly, as well as maintenance, repair, and overhaul (MRO). Over 30 businesses are involved in the design, manufacture, and assembly of rail-related products in the country, with more than 40 other local companies involved in MRO activities. With 25,000 workers currently employed in rail-related activities, the sub-sector aims to employ 68,000 by 2030.

The Government’s vision for the Malaysian rail sub-sector is that by 2030, the industry will be a strong and sustainable business, capable of satisfying the demands of national rail transportation. It also hopes that Malaysia can become a competitive global industry player that optimises the use of indigenous resources and technologies. Thus, the Government supports these initiatives and will assist local companies to advance to the next level by way of technology transfers.

RM97.3 mil

Total Approved Investments
in 2021


Jobs Created
as at 2019

>80 Companies

as at 2019

For more statistics, please click here

The COVID-19 pandemic and subsequent government measures undertaken had a significant impact on rail projects such as the East Coast Rail Link (ECRL), Mass Rapid Transit (MRT) and Light Rail Transit 3 (LRT3). The ECRL initiative is currently in its developmental phase.

East Coast Railway Link (ECRL)

The ECRL entails a comprehensive value engineered plan to construct and operate a 640km line extending over five states in Malaysia, spanning from Kelantan to Port Klang. This will further reduce the transport time of passengers and cargo. It will not only improve efficiency and productivity of businesses, but also create new sources of economic activities.

LRT3 and MRT

The LRT3 project is expected to be completed by February 2024. Once completed, the 37.8-km long project will connect the West Corridor of the Klang Valley and Kuala Lumpur. The MRT project’s Putrajaya Line is 94 per cent completed and is expected to become operational in early 2023. The second route under the Klang Valley MRT project will have 36 stations with nine being underground, running 56.2 km from Kwasa Damansara to Putrajaya Sentral.

Malaysian Rail Supporting Industry Roadmap 2030

The Malaysian Rail Supporting Industry Roadmap 2030 is an initiative by the
Malaysian Industry-Government Group (MiGHT) to chart the way forward for the rail industry development in Malaysia until 2030.

Summary of Malaysian Rail Supporting Industry Roadmap 2030

Our Investors' Highlights

SMH Rail is a Malaysian company that manufacturers locomotives, wagons, rail axles as well as maintenance, repair and overhaul (MRO) service provider with a presence in more than 20 countries. SMH Rail is the sole local manufacturer of diesel-electric locomotives in Malaysia. They have invested in the modern facility for its locomotive manufacturing plant to meet the local demand. They have extensive experience in the maintenance, repair and overhaul works for Malaysia's national railway operator, KTMB for over a decade.

- SMH Rail

Get Started

MIDA provides comprehensive support to your business as you consider the competitive and comparative advantages Malaysia has to offer for your investment. Explore our dedicated resources, wide range of facilities or consultation services to assist you in expanding your operations here.
Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
Company can submit application and track the application status online via MIDA InvestMalaysia portal at investmalaysia.mida.gov.my