Government Strategizes to Maximize Economic Impact of the ECRL
The Malaysian government is focused on leveraging the East Coast Rail Link (ECRL) to boost investment and spur the development of new logistics hubs and industrial parks strategically located along the entire railway route.
Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz confirmed this strategic direction, stating that this will be primarily executed through the Economic Accelerator Project (EAP) initiative.
The Minister underscored that the ECRL is viewed by the government as far more than just a railway project; it is a vital catalyst and driver of economic growth, specifically for the East Coast states.
He explained the comprehensive vision: “All these efforts are to ensure that the ECRL not only facilitates movement, but also generates job opportunities and improves the people’s standard of living.”
He added that the government will continue to monitor the project closely to ensure it delivers maximum benefits to the country, integrating transport infrastructure with economic development.
The commitment to developing a network of supporting industrial and logistics infrastructure is crucial because it transforms the railway from a point-to-point connector into a vibrant economic corridor.
This approach is designed to unlock the untapped economic potential of the East Coast, making it a more attractive destination for both domestic and foreign direct investment.
ECRL Construction Progress Remains Firmly On Schedule
The construction of the East Coast Rail Link (ECRL) is advancing rapidly, with the project now nearing completion of its first phase and maintaining its target operational timeline.
Minister Tengku Zafrul recently held a meeting in Tianjin, China, with China Communications Construction Company Ltd (CCCC), the main contractor for the ECRL project, to discuss the current progress and address any potential issues.
Following that meeting, the Minister provided a positive update, stating: “Thank God, ECRL’s progress has reached 85% as of July 2025. We are on track to complete Phase 1 of this project in January 2027.”
A major construction milestone was achieved in July when the Genting tunnel, which holds the distinction of being the longest rail tunnel in South-East Asia, successfully achieved its breakthrough.
The overall project completion was reported at 86.07% as of July, confirming that the ECRL remains firmly on its planned schedule.
Malaysia Rail Link Sdn Bhd (MRL) Chairman and Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar provided further details on the phased operational targets.
Phase 1 of the 665km railway, which covers the route stretching from Kota Bharu, Kelantan, to the Gombak Integrated Terminal in Selangor, is set to be completed by December 2026, with passenger and freight operations slated to begin in January 2027.
Phased Operations and the Integrated Logistics Vision
The phased completion of the ECRL, culminating in the link to Port Klang, highlights the project’s strategic role as a national logistics spine connecting key economic centers across the peninsula.
The second phase of the railway, extending the line from Gombak to the crucial Port Klang area, is currently expected to be completed by December 2027, with the final operational launch scheduled for January 2028.
This full integration of the railway with Port Klang— one of the world’s busiest ports—is pivotal to the ECRL’s value proposition.
It will create a land bridge connecting the East and West Coasts of Peninsular Malaysia, drastically reducing transit times for cargo and significantly enhancing national logistics efficiency.
The government’s Economic Accelerator Project (EAP) initiative is designed to capitalize on this improved connectivity.
By developing logistics hubs and industrial parks along the entire ECRL route, the government is ensuring that local businesses and industries can maximize the benefits of the new infrastructure.
This planned integration is central to Minister Zafrul’s vision of ensuring the ECRL generates job opportunities and raises the standard of living, making it a truly transformative project for the entire country and cementing its position as a key component of Malaysia’s long-term economic blueprint.
