China’s partnership with Malaysia is crucial not only to the construction of one of the Southeast Asian country’s key rail projects but also for the future development of a pan-Asian rail network, analysts said.

On June 19, Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim attended the East Coast Rail Link (ECRL) groundbreaking ceremony. The event, held at the ECRL Gombak Integrated Terminal Station in the west coast state of Selangor, was part of this year’s celebrations of the 50th anniversary of bilateral relations.

The China-Laos Railway, which started operations in 2021, connects Kunming in southwestern China’s Yunnan province with the Laotian capital of Vientiane

Li said that the ECRL is a flagship project of high-quality cooperation on the building of the Belt and Road between the two countries. He added that China is also willing to actively explore connecting the ECRL with the China-Laos Railway and the China-Thailand Railway to better promote the construction of new international land and maritime trade routes and enhance regional connectivity.

READ MORE: China's railway investment up 10.5% in first 4 months

The China-Laos Railway, which started operations in 2021, connects Kunming in southwestern China’s Yunnan province with the Laotian capital of Vientiane. The China-Thailand Railway, while still under construction will connect the capital city of Bangkok in central Thailand to the northeastern Thai provinces before extending to China.

At the event, Anwar said Malaysia “highly values” the relationship and collaboration between Malaysia Rail Link, which owns the ECRL, and China Communications Construction Company, its main contractor.  

Peter Chang, deputy director of the Institute of China Studies at the University of Malaya (UM) in Kuala Lumpur, said the idea of a railway linking the west and east coasts of Peninsular Malaysia has been in development for many years.

“China's technological expertise is now making this vision a reality,” Chang told China Daily.  

Chang said the ECRL could serve as a “vital component” of a broader railway network connecting Malaysia to Singapore in the south and Thailand in the north, as well as to China and the rest of Asia.

Ong Kian Ming, pro vice-chancellor for external engagement at Taylor's University in Selangor and Malaysia’s former deputy minister for international trade, said there’s one key challenge for the ECRL.

It is vital to ensure that it is financially sustainable “so that this infrastructure project won’t be seen as a costly white elephant that does not bring about a significant increase in economic activity”, he said.

The 665-kilometer rail network is expected to be operational by 2027. It will connect the East Coast states of Kelantan, Terengganu, and Pahang with the Klang Valley on Peninsular Malaysia’s West Coast.

The railway aims to promote connectivity, boost economic development, and promote trade and tourism in Malaysia’s East Coast Economic Region (ECER).

“The ECRL is crucial because it is designed to foster balanced development across Peninsular Malaysia. It aims to transfer the economic vibrancy of the Klang Valley on the West Coast to the less developed states on the East Coast,” said Chang from UM.

Ong, from Taylor’s University, said the ECRL can foster economic growth in the ECER if industrial parks and manufacturing activity could be brought to some of the key stations along the route.

The ECER covers Kelantan, Terengganu, Pahang, and the district of Mersing in the southern state of Johor.

The ECER accounts for more than half of the area of Peninsular Malaysia but economic development in these states lags behind their counterparts on Malaysia’s West Coast, forcing residents to migrate for better job opportunities.  

The Malaysian government launched a master plan in 2007 to develop the ECER and strengthen its position as the gateway to the Asia-Pacific region.

The ECER accounts for more than half of the area of Peninsular Malaysia but economic development in these states lags behind their counterparts on Malaysia’s West Coast, forcing residents to migrate for better job opportunities

As well as the construction of the ECRL, the expansion of Pahang’s Kuantan Port into a deepwater port to cater to bigger vessels and higher cargo traffic was among the major infrastructure projects under the master plan.

Mazlim Husin, chief commercial officer of Kuantan Port, said the ECRL’s construction is “very positive” for the port as this would diversify transportation networks connected to the port.

READ MORE: Country presses the accelerator on rail development

He said that the ECRL will not only develop the ECER but also enhance connections between Malaysia and China via the port.

Mazlim noted that Kuantan Port primarily serves cargo shipped between the Malaysia-China Kuantan Industrial Park and the China-Malaysia Qinzhou Industrial Park in Qinzhou, Guangxi Zhuang autonomous region.

The two parks are part of the “Two Countries, Twin Parks” collaboration model between China and Malaysia.

Contact the writer at prime@chinadailyapac.com