Federal Government to Co-Fund RM10 Billion Johor E-ART Project After PPP Review
KUALA LUMPUR, July 2 — The Federal Government will contribute funding towards the RM10 billion Elevated Autonomous Rapid Transit (E-ART) project in Iskandar Malaysia after determining that the public transport initiative would not be financially viable if financed entirely by the private sector.
Transport Minister Anthony Loke said the project was initially structured to be delivered through a Public-Private Partnership (PPP) model, with financing led by the appointed consortium. However, subsequent financial assessments concluded that government participation would be required to ensure the project’s implementation.
Speaking in the Dewan Rakyat, Loke said negotiations are still underway to determine the final financing structure, including the government’s financial commitment, repayment mechanism and concession terms.
He said the negotiated agreement will be submitted to the Cabinet for approval before a concession agreement is signed.
“The detailed financing arrangement, the government’s actual financial commitment and the concession repayment mechanism are still being finalised through negotiations. Once agreed, the terms will be presented to the Cabinet for consideration before the concession agreement is executed,” he said.
According to Loke, construction of the E-ART network is expected to take approximately four years from the date the Letter of Acceptance is issued.
He was responding to a question from Ayer Hitam MP Datuk Seri Dr Wee Ka Siong, who sought clarification on whether the Johor E-ART project would ultimately be funded by the Federal Government or delivered entirely through a private concession arrangement.
The Cabinet approved the project last month. The RM10 billion transport system is intended to complement the Johor Bahru–Singapore Rapid Transit System (RTS) Link by improving mobility within Iskandar Malaysia and easing growing traffic congestion driven by rapid urban and economic development.
Loke said a Letter of Intent (LOI) was issued on May 5 to the selected consortium comprising DOM Industries (M) Sdn. Bhd., MMC Engineering Sdn. Bhd., BTS Group Holdings Public Company Limited of Bangkok and Nylex (Malaysia) Berhad.
In parallel with the E-ART project, the Transport Ministry and the Johor state government are implementing a broader public transport improvement strategy to strengthen connectivity throughout the region.
Among the planned initiatives is the expansion of the Stage Bus Service Transformation (SBST) Programme under SBST 2.0, which will extend the BAS.MY network to 28 routes using 254 buses, including electric buses.
Of the total fleet, 157 buses will serve routes linking JB Sentral and Bukit Chagar, with operations expected to begin in early 2027.
The ministry also plans to introduce a high-frequency RTS Shuttle bus service connecting JB Sentral and Bukit Chagar with surrounding areas to support passenger movement to and from the RTS Link.
In addition, a Demand Responsive Transit (DRT) service will be introduced to strengthen first-mile and last-mile connectivity by providing more flexible transport options linking commuters with major public transport hubs across the Iskandar Malaysia region.
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