MRT Corp chief executive officer Datuk Mohd Zarif Hashim.
KUALA LUMPUR: Mass Rapid Transit (MRT) Corp Sdn Bhd is shifting its focus beyond the Klang Valley, aiming to position Penang and Johor as Malaysia’s next economic hubs, says chief executive officer Datuk Mohd Zarif Hashim.
“The Klang Valley has been the main driver of growth, contributing 40% of Malaysia’s gross domestic product (GDP). But we cannot have a single centre of growth.
“The economy must also expand to the north and south,” he said, emphasising Penang’s role as a hub for the electrical and electronics cluster and the importance of maintaining its competitive edge.
Mohd Zarif also highlighted the signing of the Johor-Singapore special economic zone agreement as a strategic move to boost growth in the southern region.
“We should start to look at the northern as well as the southern side because, from the public transport point of view, we need the density.
“For Johor Baru and Penang, the time has come for us to invest in the two regions,” he said during a panel discussion at the CGS International 17th Annual Malaysia Corporate Day 2025 here yesterday.To note, Penang’s Mutiara Line light rail transit (LRT) is set to break ground on Jan 11 and is expected to be completed by 2030, while Johor’s rapid transit system connecting to Singapore is scheduled for completion by the end of 2026.
Mohd Zarif also noted that MRT Corp is not only focused on infrastructure projects but also prioritising urban regeneration efforts to maximise the economic impact of its developments.
“In a few weeks, we will announce our regeneration of the Bukit Chagar project. In Penang, we are working with the state government to regenerate the Tapak Pesta area,” he said.
He said the company aims to increase the multiplier effect of infrastructure investments from two times in the past to 3.5 times.
“In the past, mega projects only delivered a multiplier of two. Moving forward, starting with the Mutiara Line LRT, we’re targeting a multiplier of 3.5, with a benchmark of five. To achieve this, we must emphasise urban regeneration, build local supply chains, and create export markets to reduce imports,” he explained.
“If we are able to prove the value of achieving 3.5 times yield from government investments, there should be no issue in continuing to invest.”
Mohd Zarif also noted the importance of long-term planning for Penang and Johor, noting that MRT Corp had developed master plans for the regions.
“For Penang, the Mutiara LRT Line is just the beginning. The investments won’t stop there. There will be more lines as part of the master plan.
“We also have a master plan for Johor Baru. So, it is a matter of looking at the plan and how to activate it one by one.”
Meanwhile, Transport Minister Anthony Loke Siew Fook emphasised on the need to strengthen public transportation networks while maintaining fiscal discipline.
Speaking during a fireside chat with CGS International Securities Malaysia Sdn Bhd independent non-executive director and former Khazanah Nasional Bhd managing director Tan Sri Shahril Ridza Ridzuan, Loke said the remaining three years for the coalition government are critical, adding that sustaining political stability within the unity government would be an achievement by itself.
“If we can keep this government intact, that itself is an achievement because the next three years with political stability, I’m sure we will have a lot to achieve.”
Loke highlighted that the ministry is adopting innovative financing models to expedite procurement for public transportation projects.
“We are looking at leasing models for trains, which can help us put them into use faster than conventional procurement methods,” Loke said.
He emphasised the government’s commitment to fiscal discipline, citing Prime Minister Datuk Seri Anwar Ibrahim’s cautious approach to approving large infrastructure projects.
“PMX is not anti-development or anti-mega-projects. But instead, we want to phase out commitments to improve fiscal discipline and our credit rating,” he explained.
