The Association of Southeast Asian Nations (ASEAN) nations which comprises of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, are rapidly expanding their urban rail infrastructure, particularly light rail transit (LRT) systems, to reduce urban congestion, increase connectivity, and meet sustainability goals. With surging urban populations, cities across Southeast Asia are embracing LRT as a cost-effective, flexible, and environmentally friendly mode of urban mobility. As of 2025, over 180 km of LRT lines are operational, with approximately 150 km under construction and an additional 200+ km in advanced planning stages, bringing the total projected length of the LRT network in the region to well over 500 km. These developments represent investments exceeding USD12 billion, highlighting a strong regional commitment to building resilient and integrated public transport systems.

The LRT systems in the region are typically elevated or at-grade and cater to medium-capacity ridership. They play a pivotal role in providing last-mile and mid-range connectivity, and are often integrated with metro and bus rapid transit (BRT) systems.

Overview of Operational Network
Several countries in the ASEAN region operate LRT systems, including Malaysia, the Philippines, Thailand, and Indonesia. In Malaysia, the Klang Valley LRT comprises three lines (Kelana Jaya, Ampang, and Sri Petaling), which span over 90 km and have an average daily ridership of over 0.6 million passengers. In the Philippines, LRT-1 and LRT-2 of Metro Manila cover 33 km; both lines are undergoing major upgrades. In Thailand, the Bangkok MRT Yellow Line began partial operations in 2023, with full completion expected by mid-2025, while the Pink Line is under development. In Indonesia, Palembang became the first city with an operational network with services commencing around the 2018 Asian Games, followed by Jakarta in 2023. 

Table 1 presents an overview of the operational LRT network in the ASEAN region.

Upcoming Lines and Projects
Numerous LRT projects are under construction or in the planning stage across the ASEAN region, highlighted in Table 2. 


In the Philippines,  the LRT-1 Cavite Extension (11.7 km) is nearing completion, and the proposed 23.5-km-long LRT-6 is under PPP evaluation. In Malaysia, the 37-km-long LRT3 (Shah Alam Line) in the Klang Valley is 85 per cent complete and is expected to open in phases starting Q4 2025. In Indonesia, Jakarta’s LRT is being extended, with Phase 2 works underway as well as  feasibility studies being conducted in Bandung and Surabaya. In Thailand, the Pink and Yellow monorail lines in Bangkok are progressing, offering orbital connectivity to the city. In Vietnam,  two LRT-style metro corridors in Ho Chi Minh City are under study, with financing support from the Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA). The Government of Cambodia has also proposed an LRT line linking Siem Reap to the new Angkor International Airport. 

Table 3 provides details of the major LRT projects under construction or planned.


Figure 1 provides information about the operational network and expected expansion by country in key countries in the region. 


Funding and Investment Models
The public–private partnership (PPP) model dominates the financing of LRT systems in the ASEAN region. The Philippines and Malaysia have embraced PPP models with long-term concession agreements, while Indonesia and Thailand rely on a mix of state budget allocations and foreign loans. Major funding agencies include JICA, the ADB, and the World Bank.

Recent developments include:

  • ADB’s USD1 billion financing for Manila’s LRT-2 East Extension and for infrastructure modernisation.
  • JICA’s ongoing technical and loan support for Indonesia’s urban rail projects.
  • Green bond initiatives are being considered for Malaysia’s future LRT developments.

Table 4 describes the key investment and financing models used in the ASEAN region.


Public–Private Partnership (PPP) Model for LRT Projects 
Figure 2 illustrates the typical process through which public and private entities collaborate in the development, financing, and operation of LRT systems in ASEAN countries. This model highlights the key stages, that is, the phases related to project initiation, financing arrangements, contract negotiations, construction, and operation. The flow chart emphasises the roles of government agencies, private sector investors, and financial institutions, ensuring shared responsibilities, risk mitigation, and long-term operational efficiency. By employing this model, the ASEAN nations leverage private sector expertise and funding to deliver sustainable and cost-effective urban rail solutions.


Technological Features
LRT systems in the ASEAN region are adopting advanced technologies such as: CBTC-based signalling systems for higher-frequency operations, driverless train operations (DTO) on Malaysia’s Kelana Jaya Line, and planned DTO on Indonesia’s Jakarta LRT Phase 2; and regenerative braking and solar-powered stations to reduce operational emissions and integration of real-time passenger information systems and mobility-as-a-service (MaaS) in Bangkok and Kuala Lumpur. 

Table 5 provides details of the countries that are leading in the adoption of certain technological features.


Operations and Governance
LRT systems in the ASEAN region are operated either by state-owned enterprises or through concessionaires as described below: 

  1. In Malaysia, state-owned company Prasarana Malaysia Berhad operates Rapid Rail, the operator of the rapid transit (metro) system serving Kuala Lumpur and the Klang Valley area.
  2. In the Philippines, Light Rail Manila Corporation (LRMC) operates LRT-1 under a PPP agreement.
  3. In Indonesia, Jakarta Propertindo and Kereta Api Indonesia (KAI) jointly operate the Jakarta LRT.
  4. In Thailand, Bangkok Expressway and Metro Public Company Limited (BEM) and other consortia operate under concession models.

Table 6 provides details of the ownership and governance models of these LRT operators.

Governments are also revising fare policies to ensure affordability while maintaining operational viability, often supported by government subsidies or viability gap funding (VGF).

Ridership and Socioeconomic Impact
LRT systems have proven successful in reducing congestion, improving air quality, and supporting inclusive urban development. For example, the Klang Valley LRT has increased property values along its corridor by over 20 per cent in the last five years.  In Manila, daily LRT ridership has rebounded to 400,000+ in 2024 in the post-COVID period, driven by improved services and fare integration with buses and MRT.

Urban Planning and Transit-Oriented Development (TOD)
LRT systems in the ASEAN countries are being increasingly integrated into broader urban planning strategies, particularly through Transit-Oriented Development (TOD) frameworks. TOD emphasizes high-density, mixed-use development around LRT stations to promote sustainable, walkable communities, to reduce car dependency, and to increase ridership.

Key Features of LRT-based TOD:

  • High-density residential and commercial development within 400–800 metres of LRT stations.
  • Integrated pedestrian pathways and last-mile connectivity (e.g., walkways, bike-sharing).
  • Zoning reforms to allow mixed-use buildings around LRT corridors.
  • Prioritisation of station placement near schools, hospitals, malls, and business districts.

Case Studies of TOD:

  1. Subang Jaya TOD, Malaysia:
  • Integrated with Kelana Jaya LRT Line.
  • Features commercial complexes (Subang Parade), residential towers, and educational institutions.
  • Connected with the BRT Sunway Line and the Port Klang Line Komuter Train (KTM), creating a multimodal hub.

  1. EDSA (Epifanio de los Santos Avenue) Corridor TOD, Philippines:
  • Around LRT-1 and MRT-3 interchanges (e.g., EDSA-Taft Avenue).
  • Features include integrated malls (e.g., SM Mall of Asia, EDSA Carousel BRT).
  • Supported by Manila’s Greenways Project for pedestrian connectivity.

  1. Palembang TOD, Indonesia:
  • Development of commercial and residential projects around Ampera and Jakabaring LRT stations.
  • Aimed at increasing land value and improving utilisation of elevated LRT infrastructure.

Policy and Regulatory Framework
A robust institutional and regulatory environment is essential to enable the planning, financing, and operation of LRT systems. The ASEAN countries have introduced specific policy reforms to attract private investment, streamline approvals, and align national transport goals with sustainable urban development goals.

National Urban Transport Policies Supporting LRT:

  • Malaysia: The National Transport Policy 2019–2030 encourages integrated urban mobility with LRT as a core mode of travel.
  • Philippines: The National Transport Policy 2017 and the Department of Transportation’s Active Transport Strategic Master Plan (ATSMP), 2025 prioritise the expansion of LRT corridors in Metro Manila and beyond.
  • Indonesia: The National Urban Transport Strategy called Sustainable Urban Transport Programme Indonesia (SUTRI NAMA), 2022 and Local Mobility Plans support LRT in Jakarta and Palembang, and planned corridors in Bandung.

Reforms Supporting Private Sector Participation:

  • Philippines’ Public–Private Partnership (PPP) Code / Republic Act No. 11966 (Amended 2023):

    • Streamlined project approval timelines for LRT projects.
    • Enhanced VGF options and risk-mitigation tools.

  • Indonesia’s Railways (Amendment) Act, 2025:

    • Allows regional governments and state-owned enterprises (SOEs) to co-develop urban rail projects.
    • Encourages joint ventures and foreign financing (e.g., JICA, ADB).

  • Thailand’s Public–Private Partnership Act (PPP Act), 2019:

    • Enables light rail and monorail investments under a competitive bidding model.
    • Used in Pink and Yellow Line LRT-monorail projects.

Challenges and Risks
Despite growing momentum in LRT development across the ASEAN region, projects continue to face significant technical, institutional, and financial risks that can hinder implementation. Common challenges include land acquisition and right-of-way (ROW) issues in densely populated cities like Metro Manila and Jakarta, which lead to project delays and cost overruns. Construction bottlenecks such as utility relocations, weak inter-agency coordination, and limited contractor capacity have also caused setbacks, as seen in the LRT-1 Cavite Extension and in Jakarta LRT Phase 1. In addition, political and regulatory uncertainties—such as changes in administration, moratoriums, or policy reversals—introduce further risks during long project lifecycles.

To mitigate these risks, the ASEAN governments are adopting targeted strategies. Concession agreements increasingly include step-in rights, enabling governments or lenders to take over operations if a private party defaults. Financial tools like government guarantees on minimum revenue, VGF, and multilateral support from institutions like ADB and JICA help bridge funding shortfalls. Furthermore, performance-based contracts are being structured to ensure accountability and timely delivery, improving overall project resilience and increasing investor confidence.

Conclusion
LRT developments in ASEAN countries exemplify the region’s commitment to sustainable and inclusive urban transport. As cities prioritise low-emission and high-capacity systems, LRT continues to emerge as a scalable and efficient mobility solution. Ongoing projects and future plans indicate strong regional momentum, with cooperation between governments, multilateral agencies, and private players paving the way for a more connected ASEAN.

With continued investment in infrastructure, technological innovation, and policy reforms, LRT systems are set to play a pivotal role in shaping the future of public transport in the region.