Kuala lumpur: The East Coast Rail Link (ECRL) project has reached 86.07 per cent completion as of July and is firmly on track to meet its targeted deadlines, according to Malaysia Rail Link Sdn Bhd (MRL) chairman and Chief Secretary to the Government, Tan Sri Shamsul Azri Abu Bakar. He said Phase 1 of the 665-kilometre railway, which spans from Kota Bharu to the Gombak Integrated Terminal, is expected to be completed by December 2026 and commence operations in January 2027, while Phase 2, which continues from Gombak to Port Klang, is targeted for completion in December 2027, with full operations beginning in January 2028.
According to BERNAMA News Agency, Shamsul expressed confidence in the project’s timely completion at the launch of the RHB-MRL 360-Degree ESG (environmental, social and governance) Financing Ecosystem. MRL, the project owner, is spearheading the ECRL’s development with RHB Bank as one of the core financial institutions backing the infrastructure.
Shamsul Azri emphasized the project’s alignment with Malaysia’s ESG agenda. The ECRL features 41 tunnels, 154 kilometres of elevated tracks, and 28 wildlife crossings, all designed to reduce impact on forest reserves, water catchment areas, and wildlife habitats. The electrified network is expected to cut carbon dioxide emissions by one million tonnes annually once operational.
In a commitment to sustainability, Shamsul highlighted MRL’s achievement in February 2024, becoming the first company under the Ministry of Finance and the only transport infrastructure project in the country to be financed through green Islamic instruments. MRL launched a Sustainable and Sustainable Development Goals (SDG) Sukuk Programme worth up to RM10.21 billion, marking the first government-guaranteed SDG sukuk in Malaysia.
To date, MRL has raised RM7.4 billion through the sukuk programme to fund the ECRL’s construction across Kelantan, Terengganu, Pahang, and Selangor. The collaboration between MRL and RHB through the 360-Degree ESG Financing Ecosystem aims to drive green financing efforts as RHB is a direct investor in MRL’s SDG sukuk programme.
Shamsul explained that the sukuk proceeds have been reinvested into ESG-compliant deposit instruments under RHB’s ESG Fixed Deposit Programme, creating a sustainable and integrated ESG financial ecosystem. This partnership positions Malaysia as a leader in sustainable Islamic finance.
He stressed the importance of addressing issues like climate change, social inequality, and governance, making ESG a core business requirement. As a subsidiary of the Minister of Finance (Incorporated), MRL is responsible for aligning infrastructure development with sustainability and governance principles.
Present at the event were Director-General of Public Service Tan Sri Wan Ahmad Dahlan Abdul Aziz, RHB Banking Group chairman Tan Sri Ahmad Badri Mohd Zahir, and MRL chief executive officer Datuk Seri Darwis Abdul Razak.