Transport Minister Anthony Loke has assured that there are no sustainability issues concerning Mass Rapid Transit Corporation Sdn Bhd (MRT Corp). This statement follows concerns about the increased infrastructure costs reported in the Auditor-General’s Report. Loke clarified that the government guarantees MRT Corp’s debt liability for construction costs, ensuring continuous repayment through the Ministry of Finance.
He emphasised that MRT Corp, as a government-linked company (GLC), has its construction costs covered by the government, dispelling any notions of financial mismanagement. “The debt liability in terms of construction costs is guaranteed by the government, paid by the ministry, and ensured by the Finance Ministry so that there is continuous repayment. So, there’s no issue that ‘it is not sustainable’,” Loke stated during a press conference on July 10.
The Auditor-General’s Report highlighted concerns over MRT Corp’s financial management. However, Loke noted that these concerns should be viewed in the context of long-term infrastructure investments, which naturally take time to generate returns. He explained that from a financial perspective, it is challenging for the government to recoup investments immediately due to the low fare rates and relatively low revenue from public transport fares.
Loke also reiterated the government’s commitment to the MRT3 project, emphasising that land acquisition processes involve ongoing cooperation with property developers to integrate MRT stations effectively. He mentioned that these efforts aim to minimise costs and ensure minimal social impact on the community.
Furthermore, the government is focused on improving the connectivity of the MRT network, particularly with the completion of the MRT3 Circle Line. This initiative is expected to enhance urban mobility, support economic growth, and provide better connectivity across the Klang Valley. Despite the challenges, Loke affirmed that the government has no plans to raise public transport fares, which have remained unchanged for the past decade.
