Background

The proposal was announced in June 2010 and was approved by the government of Malaysia in December 2010. Construction of the first line is targeted to commence in July 2011.

The project also represents one of the economic entry point project identified for the Greater Kuala Lumpur / Klang Valley National Key Economic Area under the Economic Transformation Program.

The proposed 3-line 150 km Mass Rapid Transit (MRT) system in KL comprising two northeast-southwest radial lines and one circle line looping around Kuala Lumpur city.

The MRT project will not only significantly increase the current inadequate rail network but will also serve to integrate the existing rail networks and expectantly alleviate the severe traffic congestion in the KL metropolitan area.

The MRT project represents one of the economic entry point project identified for the Greater Kuala Lumpur / Klang Valley National Key Economic Area under the Economic Transformation Program.

The new MRT system is envisaged to radically improve and transform Kuala Lumpur’s poor and sorely inadequate public transportation coverage and to propel the Greater Kuala Lumpur metropolitan area to be on par with that of a developed city.

Preliminary project cost which will be government-funded, was estimated by Gamuda-MMC at RM36 billion, representing the largest infrastructure project ever undertaken in Malaysia. Analysts estimate the cost could be significantly higher due to extensive tunneling works required.

While the project is welcome by most, some analysts and commentators have expressed concerns on the commercial viability of the project and skepticism on the government part to pull off a project of such scale, given the numerous past delays in other rail-related projects in Malaysia.

However, most agree that the project will generate immense economic contribution and investment returns in the future.