KUALA LUMPUR (March 27): Transport Minister Anthony Loke said on Wednesday he is not aware of any government-linked investment companies (GLICs) planning to invest in the one-trillion-baht (RM129 billion) Chumphon-Ranong Land Bridge megaproject, says Transport Minister Anthony Loke.
Loke said that the priority of GLICs is to invest in local infrastructure rather than the land bridge project.
"As far as I know, GLICs have no plans to invest in the project," Loke told the senate on Wednesday.
Thailand Prime Minister Srettha Thavisin has proposed the CRLB project in November last year, which will see the construction of two Thai ports — Ranong in the west and Chumphon in the east — that will be connected by road or rail, thus giving vessels a way to bypass Malaysian ports.
On Feb 16, the Thai Parliament approved the proposed mega project report with a vote of 269 in favour versus 147 against, despite concerns having been raised about the land bridge’s environmental impact and profitability.
Regarding Malaysia's stance on the project, Loke said that the government has suggested to the Thailand government to consider a more strategic bilateral relationship that fosters a win-win situation.
"This is a mega project. If the private sector is required to invest, they will assess its viability in terms of returns. Additionally, concerns have been raised about the project's feasibility, particularly regarding whether shipping companies will utilise the facilities," Loke said.
He added that the Malaysian government would adopt a government to government approach, and have more discussion with Thailand government concerning the project.
Earlier, Loke said that the CRLB project is expected to primarily affect container traffic in the Southern region of Thailand, handled by Penang port, which handled 262,169 TEUs or 18.2% either originating from or destined for the Southern region of Thailand in 2023
Nevertheless, Loke stressed that the relationship between Malaysia and Thailand should be seen as mutually beneficial, rather than a zero-sum game as both countries shared challenges in the political economy, providing an opportunity for collaboration on impactful initiatives, and one of the focus will be enhancing connectivity in cargo and passenger transport networks between the two nations.
Loke said Malaysia is prepared to share the latest developments of the East Coast Rail Link (ECRL) project with Thailand, and the government is open to proposals to extend the ECRL track to the border and integrate it with the Thai rail network or future infrastructure.
Efforts are also underway to improve connectivity between Malaysia's railway network operated by Keretapi Tanah Melayu Bhd (KTMB) and the State Railway of Thailand, anticipating accelerated movement of cargo and passengers and fostering economic growth in respective regions.
Additionally, Loke said collaboration in connecting railway networks with China through Laos is being explored, potentially boosting regional economic integration.
"The Ministry of Transport remains optimistic that Malaysia and Thailand can forge closer cooperation in transportation and national development, advancing mutual long-term interests rather than engaging in zero-sum competition," Loke added.