PUTRAJAYA, Aug 7 — 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.
Phase One of the 665km 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.
Meanwhile, Phase Two, which continues from Gombak to Port Klang, is targeted for completion in December 2027, with full operations beginning in January 2028.
“InsyaAllah (God willing), these plans will materialise, bringing both convenience to the people and economic spillovers to the nation,” he said at the launch of the RHB-MRL 360-Degree ESG (environmental, social, and governance) Financing Ecosystem today.
MRL, the project owner, is spearheading the ECRL’s development with RHB Bank as one of the core financial institutions backing the massive infrastructure.
Shamsul added that the ECRL sets a strong example in supporting Malaysia’s ESG agenda as the project features 41 tunnels, 154km of elevated tracks, and 28 wildlife crossings — all strategically designed to reduce intrusion into forest reserves and water catchment areas, while minimising impact on wildlife habitats.
“Additionally, the fully electrified 665km network is expected to cut carbon dioxide emissions by one million tonnes annually once operations begin in 2027,” he said.
In line with MRL’s commitment to sustainability, Shamsul highlighted a historic milestone achieved in February 2024, when MRL became the first company under the Finance Ministry, and the only transport infrastructure project in the country, to be financed through green Islamic instruments.
As part of this commitment, MRL launched a Sustainable Development Goals (SDG) Sukuk Programme worth up to RM10.21 billion, marking the first government-guaranteed SDG sukuk in Malaysia and representing a major step toward enhancing sustainable financing in the transport sector.
“The success of this SDG sukuk has been widely recognised, both locally and regionally, through prestigious awards, underscoring the government’s leadership in sustainable infrastructure and setting a benchmark for future SDG-aligned projects,” he said.
To date, MRL has raised RM7.4 billion through the sukuk programme to help fund the ECRL’s construction across four states: Kelantan, Terengganu, Pahang, and Selangor.
Shamsul noted that the collaboration between MRL and RHB through the 360-Degree ESG Financing Ecosystem will continue to drive the ECRL’s green financing efforts as RHB is a direct investor in MRL’s SDG sukuk programme.
The sukuk proceeds have been reinvested into ESG-compliant deposit instruments under RHB’s ESG Fixed Deposit Programme, a pioneering initiative and the first of its kind in Malaysia.
“This framework aims to create a sustainable and integrated ESG financial ecosystem by aligning investment and deposit activities between MRL and RHB,” he said.
This strategic partnership positions Malaysia as a leader in sustainable Islamic finance and serves as a master plan for integrating ESG principles into large-scale infrastructure financing.
Shamsul stressed that issues like climate change, social inequality, and the need for transparent governance can no longer be deferred, and hence, ESG must become a core requirement in business operations, requiring strategic, collaborative, and immediate action.
As a wholly-owned subsidiary of the Minister of Finance (Incorporated), MRL carries the heavy responsibility of ensuring that national infrastructure development is aligned with principles of sustainability and good governance.
“In line with the Malaysia Madani principle that emphasises sustainable and balanced development, MRL is deeply committed to embedding environmental and sustainability elements into the execution of this national infrastructure project,” he said.
Also 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.
