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THE government has opened up access to its railway corridors for licensed telecommunications companies to install high-speed fibre optic networks, a move the government says will accelerate digital infrastructure development and generate new revenue streams.
Transport Minister Anthony Loke announced the policy shift following Cabinet approval of a memorandum he tabled, ending the previous exclusivity arrangement held by FiberRail Sdn Bhd.
“Previously, FiberRail Sdn Bhd was the sole company granted the right to lay fibre optics along all railway lines,” said Loke. “Now, with a new policy decision to liberalise wayleave rights, other companies will be permitted to utilise railway corridors for fibre optic installations.”
YTL Communications Sdn Bhd has been named the first successful applicant under a Request for Proposal (RFP) process conducted by the Railway Assets Corporation (RAC) in 2023.
The firm will spearhead the installation of a high-speed fibre network along 1,600 kilometres of track, stretching from Padang Besar in Perlis to Johor Bahru, and to Tumpat in Kelantan.
The project agreement was formalised today at RAC’s 2025 Appreciation and Open Day, where Loke and Communications Minister Fahmi Fadzil witnessed the Letter of Acceptance handover between Transport Ministry Secretary-General Datuk Jana Santhiran Muniayan and YTL Communications CEO Wing K. Lee.
Loke stressed that the fibre optic rollout is not an exclusive venture and is open to all qualified telecoms providers.
“This is to ensure we have broader fibre optic network coverage, which is vital to improving our digital and communications capabilities,” he said. “It also provides additional revenue to RAC, as every wayleave granted will generate yearly returns for the corporation.”
RAC, in a statement, described the policy shift as a strategic move in support of Malaysia’s national digital transformation agenda. The liberalisation will allow broader access to state-owned railway corridors via competitive RFP processes, enabling more efficient use of rail assets for fibre network development.
“This initiative is expected to generate new revenue for RAC while reducing reliance on government development funds,” the statement read.
Proceeds from fibre network leasing will be reinvested into Malaysia’s rail sector, including the maintenance of rolling stock and upgrading of railway stations and facilities. – April 18, 2025