Kuala lumpur: The Ministry of Transport (MOT), the Railway Assets Corporation (RAC), and Keretapi Tanah Melayu Berhad (KTMB) are required to ensure that the procurement of electric multiple unit (EMU) train sets on lease is conducted through direct negotiations at every stage before any financial commitments are made, as emphasized by the Public Accounts Committee (PAC).

According to BERNAMA News Agency, PAC chairman Datuk Mas Ermieyati Samsudin highlighted this recommendation following the tabling of the committee’s statement on the EMU train procurement. She stressed the importance of strong justification and a comprehensive due diligence study for each phase of the procurement, particularly Phase 1, which involves direct negotiations, before any financial commitments are undertaken.

Mas Ermieyati noted that as of February 12, the PAC had summoned three main witnesses: MOT secretary-general Datuk Jana Santhiran Muniayan, RAC chief executive officer Datuk Azhar Ahmad, and KTMB chief executive officer Datuk Mohd Rani Hisham Samsudin. The PAC discovered through these proceedings that the EMU train procurement decision is still at the study stage, with the process being refined and negotiations continuing with central agencies, including the Ministry of Finance.

Although an initial estimated cost of RM10.7 billion for 62 train sets over 30 years was announced, this figure remains provisional, with no cost details finalized through formal negotiations with the supplier. The leasing model was chosen over an outright purchase due to the government’s financial constraints and the urgent need to procure trains to meet demand and address issues of delays or shortages.

The PAC recommends that the government complete a detailed study by the Public Private Partnership Unit (UKAS) to compare the leasing model with outright purchase, including a long-term cost-benefit analysis, and transparently disclose the findings to the public. Furthermore, the MOT, RAC, and KTMB must ensure that the lease agreement clearly outlines the maintenance scope covered by the supplier, including spare parts and major repairs, to avoid hidden costs to the government.

Additionally, the MOT must ensure that the leased trains adhere to the highest quality and safety standards and are compatible with Malaysia’s existing rail infrastructure.