MoF Yet To Finalise Involvement Of Local Firm In Train Set Rental Project

KUALA LUMPUR, Nov 12 (Bernama) -- The involvement of any local company in the train set rental project with a company from China has not yet been finalised, said the Ministry of Finance (MoF).

The ministry said in a reply posted on the parliament website today that the government intends to nominate local companies that have the capacity to catalyse the national rail industry ecosystem to develop local content.

“A due diligence is being carried out, among other things, to identify the project’s ability to meet the country’s strategic objectives, determine commercial viability and compliance with the company’s corporate governance obligations,” the ministry said.

In reply to a question from Tan Hong Pin (PH-Bakri), MoF said the role and percentage of control or ownership of local companies in the operation and ownership of assets in this railway leasing project will be determined after this due diligence is completed.

Tan asked whether UEM Group Bhd has any involvement in negotiations for part of the 62-train leasing project with CRRC Rolling Stock Centre (Malaysia) Sdn Bhd, including involvement in the manufacturing, maintenance or management as well as UEM's ownership in the operation and ownership of the railway company's assets.

Earlier, the local media had reported that UEM Group had been mandated by the federal government to acquire a 51 per cent stake in CRRC RSC, the Chinese company from which train operator KTM Bhd plans to lease 62 new passenger train sets at a cost of RM10.7 billion over 30 years.

-- BERNAMA