YTL Communications Sdn Bhd, a subsidiary predominantly owned by YTL Power International Bhd, has been awarded a significant contract by Railway Assets Corp (RAC) to develop fiber optic infrastructure across 1,600 kilometers of railway tracks spanning from Perlis to Johor and Kelantan. This development is part of a broader initiative aimed at improving Malaysia’s national digital connectivity.
The project, initiated in response to a 2023 Request for Proposal (RFP) by RAC, aims to open the development of telecommunications infrastructure along the rail corridors to licensed industry players. By aligning this initiative with Malaysia’s National Broadband Plan and Jendela, the National Digital Network, RAC seeks to optimize the use of national rail assets to establish a robust high-speed fiber optic network.
In a significant policy shift, Transport Minister Anthony Loke announced that companies other than the previously exclusive Fiberail Sdn Bhd would now be allowed to install fiber optics along railway routes. This move is intended to foster healthy competition, enhance digital coverage, and decrease costs for consumers.
Fiberail, currently operated by Telekom Malaysia Bhd, Keretapi Tanah Melayu Bhd, and Petrofibre Network (M) Sdn Bhd, maintains a vast network covering 5,500 kilometers across the nation, and reported commendable financials for the fiscal year ending December 31, 2023. However, this liberalization will not affect Fiberail’s existing rights under the Wayleave agreement with KTM, ensuring stability in current operations while paving the way for new developments.
RAC projects that this initiative will not only elevate national digital infrastructure but also generate additional revenue streams. These funds will bolster station and train maintenance, improve facilities, contribute to the development of new stations, and reduce dependency on government funding for development projects.
The expansion of Malaysia’s fiber optic network is poised to substantially enhance digital connectivity, providing a thrust to retail businesses and e-commerce platforms through improved online consumer access. Enhanced digital infrastructure can lead to increased consumer satisfaction and foster business innovation across the digital landscape, promising a vibrant future for the retail sector in the region.
This strategic fiber optic expansion underlines Malaysia’s commitment to embracing technological advancements, ensuring widespread digital access, and supporting sustainable economic growth.
