MOT targets 70 pct local contents in local rail industry by 2030
20 Jul 2022
The Ministry of Transport has targeted to increase the local content in the national rail industry to 70 per cent by 2030 compared to 45 per cent currently.
Minister Datuk Seri Dr Wee Ka Siong said the effort would be led by his ministry under the National Rail Center of Excellence (NRCOE) to increase the involvement of local companies to build the country’s capability so as not to be too dependent on foreign producing countries.
“We still have a lot of room for improvement, including manufacturing and assembly technologies,” he told reporters during a visit to the Hartasuma Sdn Bhd rolling stock assembly plant here today.
He said taking the example of Hartasuma’s success, which started in 1994 as an agent for a railway manufacturing company from abroad, the Bumiputera company was now able to work with international manufacturers to install rail vehicles and add local contents in Malaysia.
“I am impressed with Hartasuma today where we see from the 27 Kuala Lumpur Additional Vehicles (KLAV), the first train containing four coaches to the eighth train are made overseas.
“While the ninth train and afterwards, its installation is done here and is expected to complete the delivery in Dec 2024 which is implemented in stages,” he said.
He said the involvement of 45 per cent local content by Malaysian rail companies, including Hartasuma, created many job and business opportunities for locals.
Meanwhile, Hartasuma co-founder and executive director Tan Sri Ravindron Menon said Hartasuma is working with NRCOE to become a Tier 1 Vendor that is eligible for the installation and repair of local bogies under the Rail Vehicle Industry Development programme.
“Such initiatives can enhance Malaysia’s technical capabilities and help reduce capital outflows,” he said.
He said Hartasuma is also working with Universiti Sains Malaysia and Universiti Kuala Lumpur to produce skilled workforce for various fields in the railway industry.
Hartasuma, through a consortium with Alstom SA, was awarded a contract in 2017 for the KLAV 27 project worth RM1.72 billion to supply 108 new light rail transit (LRT) coaches for the Kelana Jaya Line with each train set to contain four coaches.