MALAYSIA is set to undergo a wide-ranging transformation of its public transport and mobility infrastructure, with over RM12 billion allocated across a series of strategic initiatives unveiled under Budget 2026.
“Mobility is not merely about physical infrastructure. It is the lifeblood of the economy and the people’s livelihoods,” Prime Minister Dato’ Seri Anwar Ibrahim told Parliament. “From remote villages to major metropolises, our public transport and road networks must be efficient, safe and well-connected.”
For urban and rural commuters alike, the government is expanding support across multiple transport modes. Nearly RM200 million has been allocated for stage bus services, with new routes and additional buses planned in Johor Bahru to support the upcoming Johor–Singapore RTS (Rapid Transit System).
Although the Rural Air Services (RAS) programme has been devolved to the Sarawak state government, the Federal Government will continue to subsidise RAS with RM209 million to support connectivity for remote communities in Sabah and Sarawak.
The MyRailLife pass, offering free travel on KTM Komuter and DMU Shuttle trains, will continue for students and persons with disabilities, and be expanded to include all children under six.
Rail network expansion remains a central pillar. The Electric Train Service (ETS) now reaches Kluang and will extend to Johor Bahru Sentral by the end of 2025. The LRT3 line, linking Bandar Utama to Johan Setia in Klang, is also scheduled to become operational by late 2025, with capacity to carry over 6,200 passengers per hour in each direction.
The East Coast Rail Link (ECRL) Phase 1—connecting Kota Bharu and Gombak—is on track for completion by end-2026. The project is expected to reduce travel time from Kelantan to the Klang Valley to just four hours.
The Klang Valley Double Track Phase 2, a RM4.1 billion project, will connect Bandar Tasik Selatan to Seremban and Simpang Pelabuhan Klang to Port Klang, with full completion expected in 2029.
To boost reliability, Prasarana Malaysia Berhad will replace 26 LRT Kelana Jaya Line trains at a cost of RM1 billion. Meanwhile, implementation has begun on the LRT Mutiara Line in Penang, set to benefit 1.8 million residents and over 3.5 million annual visitors.
As part of Malaysia’s shift to low-carbon mobility, Prasarana will receive 310 new buses by February 2026 to increase service frequency in key areas. Additionally, 300 Demand Responsive Transit (DRT) vans will be fully operational by the end of 2025 to improve first- and last-mile connectivity. Over the longer term, 1,450 electric buses and 300 electric vans will be procured in stages through 2030.
The budget also outlines a tougher stance on road safety following a series of deadly accidents, including one involving students from Universiti Pendidikan Sultan Idris, a tour bus crash in Ayer Hitam, a police vehicle accident in Teluk Intan, and a recent lorry incident at the Bukit Kajang toll plaza that claimed the life of a baby.
“These tragedies are heart-wrenching and demand decisive action,” Anwar said. The Ministry of Transport is finalising speed regulations for heavy vehicles.
RM2.5 billion will go towards maintaining federal roads—including pothole repairs, installing street lighting in high-risk zones, and replacing damaged road furniture. RM700 million of this will be reserved for small local contractors (G1–G4).
States will receive RM5.6 billion via the Malaysian Road Records Information System (MARRIS) for state road maintenance, while RM30 million is set aside to empower district engineers to accelerate minor repairs and respond to public complaints through the MYJalan app.
The Malaysian Highway Authority will install 3,000 LED lights at accident-prone points on highways.
To enforce new speed rules, the government proposes Accelerated Capital Allowance for companies purchasing speed limiters for heavy vehicles.
In a further safety push, the government will expand SOCSO health screenings to public transport and freight drivers.
To remove older, unsafe vehicles from roads, the government, in collaboration with national car manufacturers, will offer up to RM4,000 in matching grants to owners scrapping cars over 20 years old in exchange for new locally produced vehicles.
These initiatives reflect a concerted effort to modernise Malaysia’s transportation system while making safety, sustainability, and accessibility central to national mobility planning. - October 10, 2025
