PUTRAJAYA – YTL Communications Sdn. Bhd. has been selected by the Railway Asset Corporation (RAC) to spearhead Malaysia’s first large-scale fibre optic infrastructure project along the national railway corridor, following a competitive Request for Proposal (RFP) process.
The announcement was made by Transport Minister YB Loke Siew Fook during the RAC 2025 Open Day and Appreciation Ceremony, which also celebrated Hari Raya with industry stakeholders.
This move marks a key milestone in the government’s effort to liberalise the use of railway corridors for telecommunications infrastructure, in line with the National Digital Transformation Agenda.
A Digital Highway on Rails
YTL Communications will be laying high-speed fibre optic cables along 1,600 kilometres of railway track, stretching from Padang Besar to Johor Bahru, and across to Tumpat, Kelantan. This corridor cuts across major cities, industrial zones, and densely populated areas, effectively transforming the railway network into a new backbone for Malaysia’s digital connectivity.
“Opening access to more service providers will boost healthy competition, expand digital coverage, and reduce broadband costs for consumers. This is not just about infrastructure, it’s about building an inclusive digital future for Malaysia,” said YB Loke.
Seamless Integration, No Disruptions
The RAC clarified that this new initiative will not affect existing agreements, including the exclusive rights held by Fiberail Sdn. Bhd., which remain valid until 2032 under a Wayleave Agreement with Keretapi Tanah Melayu Berhad (KTMB).
All new developments will be subject to technical coordination and consultation, ensuring no disruption to existing telecommunications or rail infrastructure.
A Step Forward for Digital Inclusion
YTL Communications’ appointment follows RAC’s first-ever RFP exercise for the project, issued in 2023. The initiative aligns with national plans such as Jalinan Digital Negara (JENDELA) and the National Broadband Plan, which aim to close the digital divide and bring internet access to underserved communities.
“This initiative will enable more Malaysians to benefit from high-speed internet access, narrow the digital divide, and connect to the ever-expanding digital world,” said Dato’ Seri Yeoh Seok Hong, Managing Director of YTL Communications.
Revenue Generation for Rail Sector Development
RAC said the project is expected to create new revenue streams that will be reinvested into the country’s railway sector. This includes:
- Maintenance of trains and stations
- Upgrades to facilities including lifts and amenities for the disabled (OKU)
- Construction of new stations and rail electrification
- Reduced reliance on government development funds
“We aim to be a financially independent and competitive agency by maximising the value of our rail assets,” said Dato’ Azhar Ahmad, CEO of RAC.
Collaboration, Not Competition
Transport Minister Loke urged more industry players to view the liberalisation move as a collaborative opportunity, rather than a zero-sum competition.
“This is about shared value, liberalisation empowers the industry, extends digital reach, and brings long-term benefits to the people and the country,” he said. -MalayaDailyToday
