Malaysia is considering extending its ongoing 50-billion-ringgit ($10.6 billion) rail project closer to the border with Thailand, as it seeks to reduce economic competition with its neighbour.
Transport Minister Anthony Loke said the government is “open” to connecting the East Coast Railway Link (ECRL) to existing or planned Thai rail infrastructure.
Thailand has been promoting a so-called Land Bridge, with ports in the provinces of Ranong and Chumphon linked by a road and rail network. It is seen as a way to create a new trade route that would bypass Malaysia’s most lucrative shipping route in the Malacca Strait. The megaproject is expected to require an investment of at least one trillion baht.
“The relationship between Malaysia and Thailand is not a zero-sum game,” Loke told Malaysia’s parliament on Wednesday. Both countries face “political and economic” challenges that can be tackled together, and one area of cooperation is cross-border connectivity, he added.
The ECRL project, which will connect Malaysia’s west and east coasts, is expected to be completed by 2027. Its last stop under the current alignment is Kota Bharu, about 40 kilometres away from the Thai border in Narathiwat.
Loke said the impact of the Land Bridge, if it goes ahead, is expected to be limited to Malaysia’s northernmost major port in Penang, with its two biggest ports in Klang and Johor emerging unscathed.
“This project might take 15 years to implement — if it is started,” he said.