Government to Fund Part of RM10 Billion E-ART Project in Johor

The Malaysian government will provide funding for the RM10 billion Autonomous Rapid Transit (E-ART) project in Iskandar Malaysia, recognizing that the mega-infrastructure project is not financially viable through private funding alone. Transport Minister Anthony Loke announced that while the project was initially intended to be financed by a consortium under a Public-Private Partnership (PPP) model, current assessments indicate government involvement is necessary for its continuation.

The detailed financing methods, actual financial commitments, and repayment mechanisms within the concession period are currently under negotiation and nearing finalization. Any agreed terms will first be presented for consideration and approval by the Cabinet before the Concession Agreement is signed. The E-ART project is anticipated to be completed within four years from the issuance of the Letter of Acceptance.

This intervention addresses a question raised by Datuk Seri Ir. Dr. Wee Ka Siong regarding the project's funding status. The E-ART system is designed to complement the Rapid Transit System (RTS) Link between Johor Bahru and Singapore, aiming to alleviate increased traffic flow resulting from rapid development in the region.

Minister Loke also detailed traffic dispersal plans, including the expansion of the Bus Stop-to-Stop Bus Transformation (SBST) program to 28 routes with 254 buses, 157 of which will serve the JB Sentral/Bukit Chagar route. This phase is expected to begin in early 2027. Additionally, a high-frequency, short-distance bus service, RTS Shuttle, will be introduced to connect JB Sentral/Bukit Chagar with surrounding areas. A Demand Responsive Transit (DRT) service is also planned to provide more dynamic and flexible first-mile and last-mile connectivity from main stations.