Government Considering Leasing Transportation Assets - Loke

According to Bernama, the Malaysian government is considering the idea of leasing goods and equipment for use in transportation services, like trains, in an effort to extend their useful lives.

Transport Minister Anthony Loke explained that under this approach, the government will lease new assets instead of investing in their acquisition, with the lessor bearing maintenance costs.

“We don't need to buy new assets, but we lease the product and the facility. This is because many transport sectors, especially airlines, don't buy aircraft, they lease the aircraft.

“If we lease, the deal also includes maintenance, where the lessor is also responsible for maintenance and ensuring that the asset can be used to the maximum at all times,” he said during the Minister's Question Time in the Dewan Rakyat.

Photo: KLIA

According to the report, the transport minister acknowledged that maintenance is a significant problem for railway services and stated that the finance ministry and the ministry of economy will be consulted on the matter to determine whether the leasing model is the most appropriate for maximizing transport services.

The minister of transportation stated last week that RM257 million is needed annually for the upkeep of railway assets under the management of Keretapi Tanah Melayu Berhad (KTMB).
This is to support a dependable rail system, and according to Loke, KTMB is currently modernizing its electrification system for the Klang Valley sector to guarantee optimal operation and avoid train failures.