KUALA LUMPUR (Jan 7): Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) is exploring new funding models including public-private partnerships (PPPs) for future infrastructure projects like the Mass Rapid Transit 3 (MRT3) Circle Line, according to MRT Corp chief executive officer Datuk Mohd Zarif Hashim.
The new funding approach may help to alleviate the government's financial burden in infrastructure projects and ensure the efficient delivery of large-scale infrastructure developments.
The PPP model, for example, will allow for the division of large infrastructure projects into smaller, more manageable modules and components, said Zarif.
“Nobody expects a party to be able to undertake the entire project by itself. There are parts of the projects that have to be funded by the government, and there are also parts (smaller parts) that can be funded privately,” he said during a panel discussion at CGS International's 17th Annual Malaysia Corporate Day 2025 on Tuesday.
“We are actually exploring a new [funding] model of doing things. For example, we wanted to try the model in MRT3. We are also testing it for Penang LRT (Light Rail Transit), and also testing it for [the Johor Bahru-Singapore Rapid Transit System (RTS) Link],” he said.
“So, we are open to the idea where the private sector comes in, and to carve up a smaller module or package, and to do that on a PPP basis,” he explained.
The new funding approach came after the government announced in Budget 2025 that it is refraining from new mega infrastructure projects to focus on essential infrastructure that benefit the people and support industrial developments.
The megaprojects include the MRT3, which may only commence in 2027 once MRT Corp completes the land acquisition process for about 1,000 lots of land. The alignment of the MRT3 will run along the perimeter of the city of Kuala Lumpur, connecting to existing MRT, LRT, KTM Komuter, and KL Monorail lines through 10 interchange stations.
Zarif noted that the government is also looking at a new funding approach for the Kuala Lumpur-Singapore high-speed rail (HSR) project. Earlier, Prime Minister Datuk Seri Anwar Ibrahim said that the government will consider reviving the HSR project if there is full private-sector participation.
Anwar made the announcement during a joint press conference with Singapore's Prime Minister Lawrence Wong on Tuesday, in conjunction with Wong's two-day official visit to Malaysia from Monday.
Anwar reiterated that the country's megaprojects have to be deferred for next one or two years to prioritise some outstanding issues, such as poverty alleviation, flood mitigation, basic infrastructure, education and public health.