Over 80 urban rail (metrorail, subway, rapid transit, light metro) projects are planned to be developed in the Association of Southeast Asian Nations (ASEAN) region over the next decade. These projects will collectively span more than 5,850 km and cover over 1,030 stations. They will be developed at an estimated investment of USD270 billion. Approximately 52 per cent of the projects are expected to be completed by 2027.

Financing of rail infrastructure in the region is primarily done through budgetary support, as a part of various plans and programmes launched by governments at various levels.

Belt and Road Initiative (BRI)

The Belt and Road Initiative (BRI) is a global infrastructure development strategy launched by the Government of China in 2013 to invest in nearly 150 countries. As of August 2022, 149 countries were listed as having signed up for the BRI. The ASEAN region forms an important corridor of the BRI project. China’s Kunming (the capital of Yunnan province) is central to the envisaged road and rail connections (part of the BRI) concentrated in the region. Further, China has been increasingly involved in financing urban rail projects in Southeast Asia, the focus being driven by the Chinese government through various initiatives, policies, and commercial banks.

The Government of China has announced that it will support the development of infrastructure projects in Myanmar under the BRI as well as the Lancang–Mekong Cooperation framework; this is an economic cooperation framework among six member countries, that is, China, Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam. There are also plans to develop a rail network between Shan State in China and Mandalay in Myanmar. The transport project is expected to cost around USD8.9 billion. The environmental impact study (EIS) is expected to commence after public approval has been granted. The Government of Indonesia took support from the China Development Bank (CDB) to finance the increased project cost of the Jakarta–Bandung high-speed rail (HSR) project. The cost of the rail line has increased by USD2 billion to around USD8 billion, and the government is asking CDB to bear 75 per cent of the cost overrun.

Several ASEAN countries are developing HSR systems primarily with Chinese investments as part of the BRI, with most of these lines planned to eventually connect the region to China. Indonesia, Lao PDR, Thailand, and Vietnam have upcoming projects. In the ASEAN region, Thailand has the biggest plans for HSR projects, with four lines planned to be developed by 2028. A small section of the first line is expected to be operational in 2023. The Jakarta–Bandung HSR line in Indonesia, spanning over 140 km, is also being built with Chinese investments; it is expected to be operational in 2023. Among the four countries, Lao PDR is expected to operationalise its over 400-km line connecting the country to Kunming in China this year. Vietnam has also announced plans for the 1,560-km North–South HSR project from Hanoi to Ho Chi Minh City. However, many of these projects are not progressing as expected, mainly because of the fear of increased dominance by China and concerns about the national debt rising to unprecedented levels. For example, the Singapore–Malaysia HSR project was cancelled after Malaysia expressed debt concerns and worries about Chinese influence.

Singapore: Land Transport Master Plan (LTMP) 2040

Transport Master Plan (LTMP) 2040 outlines a long-term goal to improve the land transport system in Singapore by 2040. The Land Transport Authority (LTA) has announced plans to expand Singapore’s rail network in order to realise the goals of ‘20-minute towns’ and ‘45-minute cities’. The LTMP 2040 includes several key public transport enhancement plans, such as the expansion of the rail network (including the development of new stations and rail lines). The rail transport enhancement plans include: replacement of old trains with new trains to increase operational reliability; carrying out of a feasibility study for a new line passing through Woodlands, Sengkang, Sembawang, Serangoon North, Kallang, Whampoa, and the Greater Southern Waterfront; and construction of the Downtown Line Extension to Sungei Kadut Station. The LTA has announced plans to construct the Brickland Station along the North–South Line, between the Choa Chu Kang and Bukit Gombak stations. This will improve access to the rail network for the residents of Keat Hong, Bukit Batok West, Pavilion Park, and Tengah town’s Brickland District.

Figure 1 depicts rail initiatives under Singapore’s LTMP 2040.

Malaysia: National Transport Policy (NTP) 2019–2030

Malaysia’s National Transport Policy (NTP) will embrace the ongoing Fourth Industrial Revolution (IR 4.0), the automation of traditional manufacturing and industrial practices through smart technology, promote the modal shift from private vehicles to public transport. The five policy thrusts under the NTP are aimed at strengthening governance in order to create a conducive environment for the transport sector; to optimise, build, and maintain transport infrastructure, services, and networks for efficiency; to enhance safety, integration, connectivity, and accessibility for a seamless journey; to take steps to achieve a green transport ecosystem; and to expand Malaysia’s global footprint and promote the internationalisation of transport services.

Penang Public Transport Master Plan

The Penang Transport Master Plan provides a framework for the development of integrated and modern public transport infrastructure as well as for an increase in the modal share of public transport by developing and expanding the rail and road network in the region. On Penang Island, one light rail, two monorail lines, and one tram line are planned to be developed. In Seberang Perai, one light rail line and one monorail line are planned to be developed.

Philippines: “Build, Build, Build” (BBB) Infrastructure Development Programme

The Government of the Philippines launched the “Build, Build, Build” (BBB) infrastructure development programme in April 2017 with the aim of raising public spending on infrastructure to 7 per cent of the GDP by 2024 from less than 2 per cent a decade ago. The total required investment is estimated at USD158 billion, with the North–South Commuter Railway (NSCR) as one of the big-ticket projects under the BBB program.

Thailand: Rail Development Programme, Medium-Term Plan 2022–2026 and Long-Term Plan 2027–2036

The plan encompasses the implementation of projects totalling 2,777 km of double-track work; the construction of 2,457 km of standard-gauge lines for high-speed trains; implementation of network electrification; and development of intermodal rail freight terminals.

Around THB1.9 trillion of the plan’s total cost will be funded by the state, with the remainder expected to come from the private sector.

Track-doubling

  • Medium-term plan: Pak Nam Pho–Den Chai; Sriracha–Map Ta Phut; Surat Thani–Hat Yai–Songkhla; Hat Yai–Padang Besar
  • Long-term plan: Den Chai–Chiang Rai; Klong Sip Kao–Aranyaprathet

High-speed lines

  • Medium-term plan: Bangkok–Phitsanulok; Nakhon Ratchasima–Nong Khai
  • Long-term plan: Phitsanulok–Chiang Mai; Hua Hin–Surat Thani; Surat Thani–Padang Besar

Redevelopment of metre-gauge lines, including electrification

  • Medium-term plan: Nakhon Sawan–Tak–Mae Sot; Kanchanaburi–Ban Phachi
  • Long-term plan: Map Ta Phut–Rayong–Chanthaburi–Trat; Ubon Ratchathani–Chong Mek; Surat Thani–Donsak

Indonesia’s Ministry of Transport is aiming to extend the national railway network to 10,524 km by 2030. This includes 3,755 km of urban railway networks. Upon the completion of the planned railway projects, the length of the railway network is expected to increase from 7,032 km at present to 7,451 km by 2024.

Figure 2 depicts developments under Indonesia’s National Railway Master Plan.

The projects undertaken to meet the targets set out under the National Railway Master Plan include: development of the railway network in Sumatra and Sulawesi islands; construction of double-track railways; electrification of main lines; and implementation of a high-speed railway in Java.

The master plan is also targeting the operationalisation of 2,839 locomotives and 34,178 trains for passenger services, as well as 2,475 locomotives and 48,364 trains for freight railways.

A budget of at least IDR835 trillion is needed to achieve the targets of the master plan. Of this amount, 32 per cent will be sourced from the state budget and the remaining 68 per cent will be sourced through alternative funding schemes.

Vietnam: Rail Network Plan 2021–2030

Vietnam is focusing on upgrading its rail infrastructure and constructing new railroads. The Rail Network Plan for 2021–2030, with a vision up to 2050, was approved in October 2021. Under the plan, the country aims to develop railway infrastructure with a focus on the main transport corridors with the highest transport demand and to maximise the advantages of transporting goods and passengers on medium- and long-distance journeys.

The targets of the 2021–2030 rail network strategy include: to renovate and upgrade the existing railway lines, to connect international railway lines, to complete preparations for investment in railways, and to arrange resources for the development of a number of new railway lines. The targets of 2050 Vision include the following: complete the North–South high-speed railway route; continue to invest in building new railway lines at the Hanoi hub and the Ho Chi Minh City hub, as well as constructing railway lines connecting seaports, industrial parks, and economic zones; and renovate and upgrade the existing railway lines to meet the needs of passenger and freight transport.

Others

Laos

Besides undertaking development projects as part of the BRI, Lao PDR is transforming itself into a regional transport and trade hub. The nation borders all the other Greater Mekong Subregion (GMS) member countries, and is the only one that is crisscrossed by all three GMS economic corridors (North–South Economic Corridor, East–West Economic Corridor, and Southern Economic Corridor). Lao PDR can potentially play a key role as a major trade thoroughfare both within the Mekong region and in the wider ASEAN community.

The Government of Lao PDR is planning several railway projects, including a railway bridge with Thailand that will connect the two countries with the People’s Republic of China.

A new law requires railway developers to conduct feasibility studies and surveys before undertaking projects; to draft rehabilitation and repair plans; and to ensure that displaced people are compensated fairly and are provided better living conditions.

Conclusion

Countries in the ASEAN region have been boosting their infrastructure budgets recently. Vietnam leads Southeast Asia in infrastructure spending at 5.7 per cent of GDP, while the Philippines aims to spend 7 per cent of its GDP on infrastructure. The Government of Indonesia has announced plans to invest USD15 billion in infrastructure projects. Of these investments, funds will be used to expand the mass rapid transit (MRT) network, the light rail transit (LRT) network, and the bus rapid transit (BRT) network. The Government of the Philippines targets to spend USD28.4 billion on infrastructure projects under its Build, Build, Build programme.

Investors are showing an increasing interest because the region has notable opportunities for growth. Moreover, the governments of these countries have ambitious plans to expand their urban rail systems.