YTL Communications Sdn Bhd, a 60%-owned subsidiary of YTL Power International Bhd, has been selected by Railway Assets Corp (RAC) to develop fiber optic infrastructure along 1,600km of railway tracks from Perlis to Johor and Kelantan.
This decision follows RAC’s request for proposal (RFP) in 2023, which sought to open up the development of telecommunications infrastructure along RAC's rail corridors to licensed industry players.
The initiative aims to enhance national digital connectivity, aligning with the National Broadband Plan and Jendela, the National Digital Network. However, the project value and timeline were not disclosed. RAC emphasized that the development would optimize the use of national rail assets for the establishment of a high-speed fiber optic network.
Previously, Fiberail Sdn Bhd held exclusive rights to install fiber optics along all railway routes. Transport Minister Anthony Loke, who officiated the announcement, explained that with this policy change, other companies are now permitted to install fiber optics along the rail corridors, which is expected to foster healthy competition, expand digital coverage, and lower costs for the public.
Fiberail, 53.99% owned by Telekom Malaysia Bhd (TM), 35.99% by Keretapi Tanah Melayu Bhd (KTM), and 10.01% by Petrofibre Network (M) Sdn Bhd, operates 5,500km of fiber optic network across the country via railway and gas pipeline corridors. The company reported a net profit of RM26.44 million and revenue of RM210.05 million for the financial year ending December 31, 2023.
RAC assured that the liberalization would not impact Fiberail’s existing exclusive rights under the Wayleave agreement with KTM, which remains in effect until 2032. Any new developments will proceed through joint technical negotiations without disrupting existing infrastructure, and the rollout will be transparent and inclusive.
The initiative is expected to generate additional revenue for RAC, which will be used to maintain stations and trains, improve facilities, develop new stations, and reduce reliance on government funding for development.
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