MRT TO GENERATE BETWEEN RM3 BLN AND RM4 BLN YEARLY IN GROSS NATIONAL INCOME

PETALING JAYA (Selangor, Malaysia), Dec 18 (Bernama) -- The implementation of
the mass rapid transit (MRT) project in the Klang Valley is expected to generate
a Gross National Income (GNI) of between RM3 billion and RM4 billion beginning
next year until 2020, said Prime Minister Najib Razak.

He said between RM8 billion and RM12 billion was expected to be generated in
terms of spinoffs from the construction of the MRT project. (US$1=RM3.13)

"RM21 billion in GNI incremental impact is anticipated to be generated in 2020
from the value appreciation of the project and increase in productivity rate,"
Najib told a press conference at the Royal Malaysian Air Force base in Subang
before his departure to east coast city of Kuala Terengganu for a one-day
official visit.

The Prime Minister said the Cabinet had approved the implementation of the MRT
project at its weekly meeting on Friday.

The MRT, the largest infrastructure project in Malaysia, is an economic entry
point project identified for the Greater Kuala Lumpur/Klang Valley National Key
Economic Area under the Economic Transformation Programme.

Najib also said the MRT project would generate 130,000 jobs during the duration
of its construction which was expected to commence July next year and be
complete in five to six years.

Once operational, the MRT will first ply the Sungai Buloh to Kajang route via
the Kuala Lumpur city centre.

"The travel distance is about 60km and 35 MRT stations will be built along that
route. Integrated stations would be built in locations where the MRT overlaps
KTM Commuter, Kelana Jaya and Ampang Light Rail Transit (LRT) routes," he
explained.

The Sungai Buloh-Kajang MRT will provide efficient train service to 1.2 million
people, he said, adding that it would serve densely populated Kota Damansara,
Mutiara Damansara, Bandar Utama, Taman Tun Dr Ismail, Bukit Damansara, Cheras,
Bandar Tun Hussein Onn and Balakong.

Najib also said more than 400,000 commuters would benefit from the Sungai
Buloh-Kajang MRT service daily.

The routes and locations for the MRT have yet to be finalised and value
management studies would be conducted taking into account the optimum
utilisation rate and maximum real estate realisation value.

As such, he said the actual project cost can only be determined once the value
management studies are completed.

"The entire cost of building the project is being fine-tuned. Initial estimates
made in 2009 placed the figure at about RM36 billion but this was subject to
changes," Najib said.

The Prime Minister said the final cost of the project would depend on factors
such as the awarding of contracts through open tender, the escalating cost of
raw materials and others.

The Prime Minister also added the government decided on kicking off the project
with the Sungai Buloh-Kajang route as this corridor did not have adequate rail
transport service.

Indepth studies were also carried out on this route which was proposed by
Syarikat Prasarana Negara Bhd in 2008 and by MMC-Gamuda Joint Venture Sdn Bhd
recently.

The Sungai Buloh-Kajang MRT will built under phase one of the MRT network in the
Klang Valley.

Future routes to be developed gradually over several stages have been proposed
and is being studied under the Urban Public Transportation Masterplan, he said.


Asked if any new entry points projects would be unveiled, Najib said several
projects would be announced in January.
-- BERNAMA