Kuala lumpur: RHB Investment Bank Bhd (RHB IB) remains optimistic about the East Coast Rail Link (ECRL) project’s development, sustaining its ‘Overweight’ stance on the construction sector. The bank has identified Gamuda Bhd, Sunway Construction Group Bhd, and Binastra Bhd as its preferred choices within the sector.

According to BERNAMA News Agency, the investment bank has recently assessed the ECRL segment between Kuantan and Gombak, expressing encouragement by the ongoing progress. The Transport Ministry reported that the ECRL project had achieved 87 percent completion by August. Under Budget 2026, the government emphasized that phase one, spanning from Kota Bharu to Gombak, is scheduled for completion by the end of 2026.

RHB IB highlighted that the revised cost estimate for the ECRL, adjusted in December 2022, stands at RM50.3 billion. The project encompasses the construction of a 665 km railway line with 20 stations, extending from Kota Bharu to Port Klang. Additionally, it includes the Serendah Bypass to aid cargo movement from the north and a rail extension from the Jalan Kastam station to both Westports and Northport terminals.

According to Malaysia Rail Link, the value of contracts awarded to local companies participating in the ECRL amounted to RM18.6 billion as of July 1, surpassing the initial target of RM10.8 billion. RHB IB noted that the next phase of the project is anticipated to involve a 25 km spur line linking Jalan Kastam station to Northport and Westport, referred to as section D. Bids for section D are estimated to range between RM600 million and RM900 million, with construction projected to commence by the end of 2025 and conclude by December 2027.

The investment bank also mentioned that a potential catalyst for the project is the proposed ECRL extension to Rantau Panjang, Kelantan, on the Thai border, which remains in the preliminary discussion stage.