MALAYSIA has stepped up investment in rail infrastructure. Many projects are under way or in the planning stage. These projects include the Klang Valley Light Rapid Transit (LRT) 3 and Mass Rapid Transit (MRT) 3, Penang LRT, Johor and Sarawak Kuching Autonomous Rapid Transit, Gemas to Johor Baru Electrified Double-Tracking Rail, Johor Baru-Singapore Rapid Transit System, East Coast Railway Link, and High-Speed Rail.

Good rail governance ensures that railway assets and operations are managed to a high standard for Malaysians to enjoy.

Separation of assets and operations

The separation of assets and operation services began with the transfer of KTMB’s assets to the Railway Assets Corporation (RAC) and subsequently the separation of MRT Corp (asset company) and Rapid (operating company) in the MRT lines. Separation of assets and operations allows for better checks and balances in costly railway projects.

The asset company would focus on establishing, developing, and maintaining the rail infrastructures, while the operating company would focus on rail operations. This allows the two entities to concentrate on their own specialities, avoiding large-scale mismanagement and excessive debt which would affect the operations if both assets and operations were in the same entity.

Better governance

There are a few ways in which asset and operating companies could enhance accountability and transparency to regain user confidence and provide a quality, affordable, and dignified option for the public.

Both asset and operating companies are required to publish audited annual reports,. Since RAC has taken over the maintenance of KTMB stations, the former could emulate Prasarana’s practice by publishing and updating its maintenance data on its website.

Prasarana owns and operates some of the rail and bus services such as LRTs, Monorail, BRT, as well as Bus and Demand Responsive Time vans. It is vital for the federal government to conduct a feasibility study to separate Prasarana into two entities. A separation of assets and operations in Prasarana will faciliate better accountability and transparency as one entity will focus on rail infrastructure and development of its own land banks, while the other will focus on rail and bus operations in the cities.

Proactive role of MOT

The Transport Ministry (MOT) owns the statutory body RAC while Finance Ministry (MOF) owns those the corporatised bodies KTMB, MRT Corp, and Prasarana through MOF Inc. 

There are some ways in which MOT can enhance its role to improve the user experience. MOT could set up a channel to collect feedback (suggestions, complaints) on rail and bus operations, the condition of infrastructure in rail and bus stations, as well as covered walkways and pedestrian paths. MOT should also work closely with various stakeholders, such as asset companies and operating companies, to improve the user experience. 

The values of quality, affordability, and dignity should be upheld in public transport policy. – July 15, 2024.

* Nick Tan Beng Teong graduated with Bachelor of Economics at University of Malaya. A member of Agora Society, Tan believes in policy reforms in order to build a better nation.