KUALA LUMPUR: The Ministry of Transport, Railway Assets Corporation and Keretapi Tanah Melayu Berhad must ensure each stage of electric multiple unit train set procurement occurs through direct negotiations before financial commitments are made.
Public Accounts Committee chairman Datuk Mas Ermieyati Samsudin revealed this recommendation following the committee’s statement presentation today.
She stated that strong justification and comprehensive due diligence must support every procurement phase, particularly Phase 1 involving direct negotiations.
The PAC examined three key witnesses including MOT secretary-general Datuk Jana Santhiran Muniayan on February 12.
Committee findings indicate the EMU train procurement decision remains unfinalized and currently stays in study phase.
The process continues undergoing refinements with ongoing negotiations involving central agencies like the Ministry of Finance.
An initial announcement estimated RM10.7 billion for 62 train sets over three decades.
Mas Ermieyati clarified this figure remains merely an estimate without finalized cost details through formal supplier negotiations.
The leasing model selection over outright purchase considered government financial constraints and urgent train procurement needs.
This approach addresses demand fulfillment and resolves delay or shortage issues effectively.
The PAC recommends government completion of a detailed Public Private Partnership Unit study comparing leasing versus purchase models.
This analysis must include long-term cost-benefit assessment with transparent public findings announcement.
Mas Ermieyati emphasized that lease agreements must clearly define supplier-borne maintenance scope including spare parts and major repairs.
This clarity prevents hidden costs from burdening the government unexpectedly.
The Ministry of Transport must ensure leased trains meet highest quality and safety standards consistently.
Compatibility with Malaysia’s existing rail infrastructure remains another critical requirement for successful implementation. – Bernama