RHB took a gander at the progress of the East Coast Rail Link (ECRL) portion between Kuantan and Gombak and felt upbeat about the progress. The ECRL project has reached 87% completion as of August, according to the Ministry of Transport.
Under Budget 2026, the Government highlighted that ECRL Phase 1 (Kota Bharu to Gombak) is expected to be completed by the end of 2026 which is on track.
The latest construction cost for ECRL is RM50.3 bil. This involves the construction of a 665km railway line, with 20 stations from Kota Bharu to Port Klang.
It also involves the construction of the Serendah Bypass, which facilitates the movement of cargo from the north, and railway extension from the Jalan Kastam station to both the Westports and Northport terminals.
“Based on our observations, the construction of rail bridges for ECRL has progressed well into the Gombak area. We learnt that the ECRL Bridge 28 was completed in six months by the China Communications Construction Co Ltd,” said RHB.
Stations from Kuala Lumpur to Kuantan, namely those at Bentong, Temerloh and Gombak, among others, have also seen major development.
According to Malaysia Rail Link, the value of contracts awarded to local companies involved in ECRL has reached RM18.6 bil as of 1 Jul.
Key contractors having experience in ECRL include IJM Corp, Advancecon, HSS Engineers, Tanco Holdings among others.
The next portion we can anticipate for ECRL is the spur line connecting ECRL’s Jalan Kastam station to Northport and Westport which is 25km long, known as Section D.
According to The Edge, at least five firms (WCT Holdings (WCT MK, NR)–MMC Corporation JV, Dhaya Maju Infrastructure (Asia), DOM Industries, and the SIPP Rail-YTL Construction JV) had submitted their bids as the tender process closed for the construction of the rail lines linking ECRL with Port Klang.
Bids for Section D of ECRL are said to range between RM600 mil and RM900 mil. The physical works are expected to commence at the end of 2025 and be completed by Dec 2027.
A catalyst for the ECRL project which could create opportunities for contractors is the proposal to extend the ECRL to Rantau Panjang, Kelantan which is bordering Thailand.
The Government plans to attract more investments and create a new logistics hub and industrial parks along the ECRL route. We see IJM as a strong contender in the industrial building space, evident by its jobs to construct warehouses, data centres and semiconductor manufacturing facilities.
Key downside risks to the project include unforeseen delays to its overall completion timeline by Jan 2028. —Oct 28, 2025
Main image: Malay Mail
