Ktm Rail Contracts On Silver Platter For China

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Rocky Bru's posting here suggested that Railwaymen Union of Malaya (RUM) take up their case with the Minister of Transport, Dato Dr Wee Ka Siong and if possible, all the way up to Prime Minister, Tan Sri Muhyiddin Yassin. One of their main grouse is China. 
In January this year, RUM President Abdul Razak Md Hassan reminded PN government to stop the flood of China trains. They were opposed to the purchase of Locomotive Dalian and Six Car set (SCS) trains from China, which are technically deemed as problematic. Razak claimed most of the China purchases were made on the basis of direct negotiation instead of open tender. 
RUM's concern against China dates back to the BN government. When PH came to power, they received the new Minister of Transport Anthony Loke from DAP with open arms and the hope of change. Loke voiced matters they wanted to hear. PH used the tagline of "selling the country to China" in their GE 14 campaign against Najib. Till today, Loke continued to be vocal on overeliance with China though it is more his politics to shadow MCA.  
Actually, Loke began to make an about turn in attitude towards China since January 2019. It was then that he expressed excitement over prospect of China assistance for Malaysia to build trains and prospect of being a hub for rail equipment for South East Asia.     
Despite PPBM uttering the same campaign line as PH during GE14, it has not change for the PN government. Words are MoT invited a China company late last year to submit a proposal for ten 6-car  Electrical Multiple Units (EMUs). The specs are said to be tampered. 

Muhyiddin is due to make a visit to China. It is anticipated that a revised plan for the southbound HSR will be an agenda of discussion. Malaysia recently scraped HSR joint development with Singapore who insisted on the single asset company plan. 
The excuse is for more involvement for local firms. Intention becomes clearer with an attempt to answer the question: Is there any local Malaysian firms with best-in-class expertise in HSR? Destini, perhaps? China have long been eyeing for the HSR contract.  
Malaysia Boleh

Recently in a meeting with all Ministry Secretary Generals (KSUs) on February 23rd, 2021, Prime Minister directed KSUs to use and develop more local contractors in the new push for cellular economy to achieve circular growth over the past approach for linear growth.  
This should mean reduce reliance on foreign supply chain and become do more local. It would mean giving opportunity, developing and assisting local contractors, manufacturer, and suppliers. 
Then it means MoT and KTMB should be looking towards local contractors and manufacturers in area which local can do. Where locals yet to do but have yearning to do, they need to be assisted and financially supported for the overall benefit to achieve the circular growth effect.      
Muhyiddin should make sure he deliver what he said. MoT KSU is still inviting China when there are local companies with the capability and capacity to do railway jobs. 
Scomi Bhd, before in went bankrupt, used to be a rail system manufacturer, specialising in monorails. The company used to be one of the world's three leading providers of monorail systems. It is one of four globally recognised integrated monorail system providers and was supplying trains for Sao Paolo and Monorail. 
Harthasuma Sdn. Bhd "pioneered the evolution of the local rolling stock industry by supplying the first locally assembled passenger coaches and LRT’s in Malaysia". To date, they have delivered more than 400 cars. 
Majestic Engineering Sdn. Bhd been in the business since 1992 and lay claim as experts in the Maintenance, Repair and Overhaul (MRO) of railway rolling stock and components. Hisniaga Jaya Sdn Bhd been involve in depot and rolling stock maintainance. Apex Communication Sdn Bhd in telecommunication and electical system. 
There are more such companies involved in railway works, which the government should use the project and any collaboration with foreign companies to build up the technical capability, capacity and marketability of local companies for international collaborations. 
Not expressed by the union's champion of local firm, the heavy dependence on China will not be of benefit to the nation. It is a conduit for corruption, breeds inefficieny, and disruptive to KTMB services which adding to its losses. 
China companies are beginning o be complacent. After 3 years, only one of the 20 locomotive class 29 for overhaul was delivered. Not only Philipines cancellation, Sri Lanka resented trains from China. If Pakistan can build their own coaches, why not Malaysia?  
Monopoly to China
The union's concern against China dates back to end of Tun Abdullah and Dato Najib administration for awarding China contractors Class of 92 Eletrical Multiple Unit (EMU) and ECRL.
The 38 sets EMU costing RM1.9 billion was marred by allegations of corruption in which irregularities exist in the pricing during renegotiation. The tender won in 2018 was RM18 for 3-car set, but finally became RM48 million per 6 car set.
Due to past experience with the previous BN governments, RUM initially received Anthony Loke's appointment as Minister of Transport for PH with open arm because he was speaking what they wish to hear. PH used the tagline of "selling the country to China" in their campaign against Najib for GE14.  
Till today, Loke is still voicing their grievances on the Klang Valley Double Tracking phase 2 (KVDT2) project. which they claimed intervention to force the main contractor to sub-contract entirely  to a China company.     
However, back in January 2019, RUM began to show reservation as they cautioned "the new government not to be gullible when buying trains from China due to issues with similar purchases in the past."
"The union also cautioned the government against employing the previous administration’s direct-tender method, which it said is against Harapan’s promise to be transparent." There were "about 100 train sets, which were bought from China without open tender, between 2012 and 2017" costing a total estimate of RM5.743 billion.
Then CEO and recently returned, Rani Shamsuddin denied the RM5.743 billion China direct nego using the excuse it was purchased by government. All KTM purchases of asset is by government. That was a weak defense. No wonder union protested his reappointment. 
China investment
RUM cautioned Loke, who was showed exuberance during his visit to CRRC Rolling Stock Centre in Batu Gajah, to describe it as "railway diplomacy". 
The investment from CRRC in roling stock is a step towards increasing Malaysia's capability in train manufacturing. They invested RM400 million in 2015. It has the capacity to assemble 200 trains a year. Supposedly there is transfer of technology to locals. About 85% of the workers are local and are sent to China for training. 
The centre can expand activities beyond maintenance or overhaul to engineering parts and whole sets for the ASEAN market. Major cities in the ASEAN region are in need of light rail transit, metro, suburban rail, locomotive and cargo trains. Loke expressed hope that "Made in Malaysia" trains will be operating in the country and ASEAN countries. 
It is good for Malaysia but it will means China will be dominating KTMB to the point of dependence Other local players could not compete technically and lobby for a piece of their cellular. Is there a local partner as shareholder in the CRRC manufacturing plant?  
The sceptical union described it as marketing gimmick to sell more trains using government to government relation to by-pass open tender. Will the train manufactured in Malaysia get to be sold to other ASEAN countries?

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