KUALA LUMPUR (18 December 2010) - The Cabinet at its weekly meeting
yesterday approved the implementation of a mass rapid transit (MRT) system
for Kuala Lumpur.
project, which will be the largest infrastructure project in Malaysia, is
one of the economic entry points (EPP) identified in the Greater Kuala
Lumpur/Klang Valley National Key Economic Area under the Government’s
Economic Transformation Programme.
The MRT will improve the public transport modal split from the 12% in 2009
to 50% by 2020 with rail transport carrying 50% of public transport trips.
This improved mobility will enable the Greater Kuala Lumpur/Klang Valley
conurbation to be transformed into an attractive place for investment and
The MRT project will create 130,000 jobs during its construction. The
project is expected to generate gross national income (GNI) of between RM3
billion and RM4 billion per annum from 2011 to 2020 from direct
construction and operations, and between RM8 billion and RM12 billion in
spillovers resulting from the multiplier impact from the construction. A
total of RM21 billion per annum in incremental GNI impact will be
generated in 2020 in appreciation of property value and unleashing of
productivity of workers.
Construction work for the project is expected to begin in July 2011 and
will take about five or six years to complete.
The first MRT line will run between Sungai Buloh and Kajang through the
centre of Kuala Lumpur. The length of the line is about 60km and has 35
stations. There will be integration stations where the MRT intersects with
the KTM Komuter, Kelana Jaya light rail transit (LRT) line and the Ampang
The Sungai Buloh-Kajang MRT line will serve a catchment area of about 1.2
million people. The line will serve densely populated areas like Kota
Damansara, Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Bukit
Damansara, Cheras, Bandar Tun Hussein Onn and Balakong. The daily
ridership of the line is expected to be over 400,000 passengers.
The exact alignment of the MRT line and location of stations have not yet
been determined as these are subject to value management studies so that
the optimum value in terms of ridership and in realising the full value of
the land around the stations can be achieved. The exact cost of the
project will be determined after the studies are conducted.
The government picked the Sungai Buloh-Kajang line to start the MRT
project as this corridor is currently not adequately served by rail-based
public transport. Furthermore, the viability of this line has been studied
in depth as was proposed by Syarikat Prasarana Negara Berhad in 2008, and
recently by MMC-Gamuda Joint Venture Sdn Bhd.
The Sungai Buloh-Kajang line is the first phase of the Klang Valley’s MRT
network. Future lines have been proposed and are being studied as part of
the Urban Public Transport Master Plan being drawn up by the Suruhanjaya
Pengangkutan Awam Darat. Construction of these future lines will be
carried out in phases.
The Cabinet today also decided that Syarikat Prasarana Negara Berhad, a
fully owned subsidiary of the Ministry of Finance Inc, to be the
infrastructure owner of the project, while the Suruhanjaya Pengangkutan
Awam Darat (Land Public Transport Commission) will be the supervising
authority for this project.
The Cabinet also decided that MMC-Gamuda Joint Venture Sdn Bhd be
appointed the project delivery partner (PDP) for the MRT project. The
appointment is based on the financial standing of the two public listed
companies which make up the joint venture and their strong track records
and experience in the field of construction and in undertaking huge and
complex rail and tunneling projects.
The PDP plays the role of a project manager but with the added
responsibility of having to deliver the project within an agreed time and
cost. Any cost overrun and delays in project completion which are basic
common risks in projects will be borne by the PDP.
The PDP is not a turn-key contractor and the project will be divided up
into work packages which will be awarded individually through open tender.
The government will make the final decision on the awarding of contracts.
The PDP will not be allowed to tender for any of the work packages except
for tunneling works. The government felt that an exception should be made
as the PDP is the only local construction company that has experience in
major tunneling works such as in the SMART Tunnel project in Kuala Lumpur,
and the Kaohsiung MRT project in Taiwan. Nevertheless, the PDP will still
have to compete for the work package with other companies and the award
will be given on the basis of merit.
About the Land Public Transport Commission
The Land Public Transport Commission was officially established on 3 June
2010 following the passing of the Suruhanjaya Pengangkutan Awam Darat Act
2010 by Parliament in May 2010.
The Commission, which the Prime Minister directly oversees, will bring
virtually all aspects concerning land public transport under one roof. It
will draw up policies, regulate, and plan for all train services, bus
services, taxis and freight transport for both road and rail. It will also
have enforcement powers and in carrying out this aspect of their functions
and will work closely with other enforcement agencies such as the Royal
Malaysian Police and the Road Transport Department.
The Commission will play a central role in improving road and rail-based
public and freight transport in the country. Improving public transport is
one of the National Key Results Areas in the Government Transformation
Plan initiated by Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak