Written by Irhamy Ahmad, Founder and Managing Director of Irhamy Valuers International
The East Coast Rail Link (ECRL) is more than a railway project, it is a game changing economic reshaping Malaysia’s east and west coast connectivity. Stretching across 665 kilometres from Kota Bharu, Kelantan, to Port Klang, Selangor, the ECRL is built to serve both passenger and cargo, with a dual-track electric rail system capable of speeds up to 160 km/h for passengers and 80 km/h for cargo. Once completed, it’s set to boost everything from logistics and real estate to industrial growth and tourism.
One of the impacts of the ECRL is on real estate. New stations and transport hubs in areas like Mentakab, Kuantan, and Dungun are increasing interest in nearby land and property. Improved accessibility is attracting investors and developers to previously remote locations. Property prices are expected to rise, especially near transit-oriented developments (TODs), where mixed-use projects are likely to thrive. In Terengganu, for example, TODs are being planned around the six ECRL stations, and this could pave the way for new townships and lively urban centres in the East Coast Economic Region (ECER).
Strategic ports such as Kuantan, Kemaman, Kertih, and Tok Bali are set to benefit immensely from the ECRL. By connecting these ports to Port Klang via an efficient land bridge, the rail link reduces logistics costs and transit times for cargo shipments. Kuantan Port is expected to grow into a key regional transshipment hub, while Kemaman and Kertih ports, will support industries like oil, gas, and chemical. Tok Bali, with its proximity to agriculture and fisheries activities, can leverage the ECRL to access wider markets, boosting local economies.
To support the integration of rail logistics, the Ministry of Transport (MOT) is working on policies to encourage cargo companies to move away from road transport. The idea is to reduce road congestion, reduce accident risks, and improve the flow of goods. The policy is expected to be implemented when the ECRL becomes operational, which is projected for early 2027.
Supporting this logistics revolution are ECER industrial parks strategically located along the ECRL route. These include the Malaysia-China Kuantan Industrial Park (MCKIP), Kertih Biopolymer Park, Pahang Technology Park, Kuantan Fish Processing Park and the Tok Bali Industrial Park. These parks are tailored to attract high value industries such as manufacturing, biotechnology, food processing, and petrochemicals. This creates a shared advantage, streamlined logistics for businesses and broader development for the region.
Beyond logistics and real estate, the ECRL is also opening new frontiers in rail tourism. With scenic routes through lush forests, rivers, and coastal towns, the ECRL offers a unique travel experience that could rival other scenic railways in Asia. The development of Recreational Vehicle (RV) tourism in ECER is another innovative initiative. By establishing RV parks near ECRL stations and tourist attractions, Malaysia aims to draw local and foreign tourists seeking flexible, land-based travel experiences.
In conclusion, the ECRL is not just a rail line it is an economic artery. Its impact on real estate, ports, industry, and tourism will be long-lasting, contributing significantly to the goals of balanced national development under the Shared Prosperity Vision.
As Malaysia accelerates into a new era of connectivity, the ECRL is laying the tracks for a more connected, balanced, and prosperous Malaysia.
