Home to around 698 million people (9 per cent of the world’s population) in 2024, many Southeast Asian (SEA) countries have experienced high population growth, rapid urbanisation, and rising income levels in recent years. Almost half of the population of the Association of Southeast Asian Nations (ASEAN) member countries now lives in urban areas or cities, compared to only 22 per cent in 1967. This trend is expected to continue, with 66 per cent of the population projected to live in urban areas by 2050, leading to the demand for urban travel more than tripling between 2015 and 2050.
Southeast Asia Infrastructure discusses the performance of the urban transport sector in the region in 2024…
Additions to the network
Over the years, there have been remarkable advancements in urban rail infrastructure in the SEA region. These have been undertaken to address increasing urbanisation, reduce traffic congestion and improve public transportation efficiency across the region. In the Philippines, the Light Rail Manila Corporation commenced passenger services in November 2024 on the first phase of the Cavite Extension of Manila’s Light Rail Transit (LRT) Line 1. This phase covers 6.5 km and five stations and, when completed, the entire extension will reduce travel time by approximately 30 minutes.
In Singapore, the launch of stage 4 of the Thomson-East Coast Line (TEL4) in June 2024 marked a significant milestone, adding seven new metro rail transit (MRT) stations. This 10.8 km section brings the total operational TEL stations to 27 out of 32. The extension has enhanced connectivity and convenience for commuters.
Vietnam made a historic leap in its transportation infrastructure with the inauguration of its first-ever metro line in December 2024 in Ho Chi Minh City. Running nearly 20 km from the city centre, this new line aims to alleviate traffic congestion and reduce pollution, setting the stage for further urban development.
Funding from multilateral banks
To support these ambitious projects, SEA governments have secured substantial funding from multilateral banks. In the Philippines, the Japan International Cooperation Agency finalised a PhP 55.78 billion loan agreement in March 2024 for the Metro Manila Subway Project’s phase 1. This underground rail project, the country’s first, will improve connectivity and reduce congestion in Metro Manila. Furthermore, the Asian Development Bank has announced plans to approve a $1 billion loan by 2025 to fund the MRT Line 4, which will connect Ortigas Avenue to Taytay, Rizal.
In Vietnam, the European Union’s Asia Investment Facility, the French Development Agency and the Vietnamese government signed a significant financial agreement in June 2024 to improve Hanoi’s transport system. This includes a Euro10 million grant for a feasibility study to extend the Metro Line 3. In addition, the World Bank committed $11 billion in May 2024 to fund various infrastructure projects in Vietnam, including metro lines in Hanoi and Ho Chi Minh City.
Indonesia has also secured funding to expand its transportation network. In September 2024, the Indonesian government began construction on a 25 km expansion of Jakarta’s MRT system, supported by a $1 billion loan from Japan. This extension will connect the city of Bekasi to Jakarta’s west, helping to ease traffic congestion in the capital.
Embracing technology
Autonomous rail rapid transit (ART): SEA is leveraging advanced technology to revolutionise urban transport systems. In Indonesia, the Nusantara Capital Authority, in collaboration with PT Kereta Api Indonesia and PT Industri Kereta Api, initiated driverless train testing for the ART system in August 2024. This hybrid system, a mix of bus, train and tram, is being tested in the city as part of an innovative solution to urban mobility. In Malaysia, a proposal for a multi-tiered ART system in Johor Bahru was announced in April 2024 to address traffic congestion. This system, still awaiting federal approval, will contribute to Malaysia’s efforts to improve sustainable urban transport.
Ticketing innovations are also making waves across the region. In Indonesia, PT Bank Mandiri partnered with PT Kereta Api Indonesia in October 2024 to introduce digital fare payments for the Greater Jakarta commuter rail and LRT network via the Livin’ by Mandiri mobile application. This partnership integrates QR-based payment solutions at ticket counters and vending machines. Similarly, MRT Jakarta introduced a pay-later initiative in collaboration with the Kredivo Group, allowing passengers to purchase tickets via the MRT app without paying upfront.
In Malaysia, the integration of ticketing systems between Keretapi Tanah Melayu Berhad and Express Rail Link was launched in September 2024. This initiative enables passengers to book tickets for both operators through KTMB’s Kits application or ERL’s website. Additionally, in October 2024, Malaysia’s Ministry of Transport announced the merger of the My50 public transport pass with the Touch ‘n Go eWallet, streamlining digital renewals and minimising queues at LRT stations.
Upcoming corridors
Looking ahead, SEA’s rail networks are set to expand even further, with several big-ticket projects planned for the coming years. In Indonesia, plans to integrate the Jabodebek LRT with the Soekarno-Hatta Airport Rail (Jakarta Airport Railink) were announced in December 2024. The integration will enhance connectivity between Jakarta and its major airport, expediting travel for both commuters and tourists.
In Singapore, the Land Transport Authority (LTA) announced in January 2025 that construction of the Downtown Line 2 extension will begin by late 2025. This 4 km extension will link the Bukit Panjang terminus to a new interchange station on the North-South Line, improving connectivity for commuters in the north-western region.
Thailand is ramping up its urban rail initiatives, with plans for a THB 20 all-route electric train system set to launch in September 2025, connecting five major train lines. In March 2024, the Thai government also announced the construction of its first LRT system in the north-eastern province of Khon Kaen, set to begin in 2025 with passenger service expected by 2027. Furthermore, in September 2024, the Pattaya City Council approved plans for an 11 km monorail line, which will be constructed in two phases and completed by 2027.
Lastly, Vietnam has set ambitious goals for its urban rail systems. In September 2024, the Ministry of Transport outlined plans to expand Hanoi’s and Ho Chi Minh City’s metro networks, aiming to complete 580 km of metro lines by 2035. By 2045, this figure will rise to 949 km, ensuring that urban railways account for over 55 per cent of public transport capacity by 2060.
Challenges ahead
Public investment in transport infrastructure in SEA has struggled to keep up with rapid urbanisation, leading to traffic congestion, pollution and overcrowded public transport networks. Between 2020 and 2050, urban populations in countries like Cambodia, Laos, the Philippines, Myanmar and Indonesia are projected to grow significantly, placing further pressure on cities. Additionally, ride-hailing platforms like Grab and Gojek have emerged as a challenge to mass transit systems, offering convenient, flexible, door-to-door services that appeal to commuters, particularly in cities like Ho Chi Minh City and Bangkok, where they increasingly compete with traditional public transport.