Malaysia eyes direct rail link to Kazakhstan for faster exports to EU, Russia

KUALA LUMPUR: Malaysia and Kazakhstan are exploring a direct rail link to enhance trade connectivity and open new export routes to Russia, the European Union, and Iran. recommended by Kazakhstan’s ambassador to Malaysia, Bulat Sugurbayev, said the proposed rail connection would provide a cost-effective and faster alternative to maritime shipping, which faces delays due to geopolitical tensions. “This route could significantly reduce transit times for Malaysian goods heading to major markets near Kazakhstan,” he said after appearing on Bernama TV’s “The Nation” programme. ADVERTISEMENT Kazakhstan Temir Zholy (KTZ), the national railway company, is in talks with Keretapi Tanah Melayu Bhd (KTM) to establish a logistics partnership linking both countries. Sugurbayev highlighted the Port of Khorgos, the world’s largest dry port, as a key gateway for Malaysian exports to China and beyond via rail. “Malaysian businesses can leverage Kazakhstan’s rail network to access Eurasian markets more efficiently,” he added. The ASEAN Express, a freight rail service connecting Selangor to Chongqing, could serve as a foundation for expanding rail links between ASEAN and Central Asia. Sugurbayev noted that Malaysian goods could reach Europe and the Middle East faster by rail through Kazakhstan’s multi-modal transport corridors. Kazakhstan’s dry ports, operating as free trade zones, offer Malaysian investors streamlined logistics and tax benefits for regional trade. ADVERTISEMENT He encouraged Malaysian firms to explore opportunities in Kazakhstan’s growing economy, supported by government incentives and legal reforms. The Astana International Financial Centre (AIFC) provides a business-friendly environment with English common law and British judicial oversight. “Malaysian companies can establish a presence in Kazakhstan to trade freely within the Eurasian Economic Union,” Sugurbayev said. ADVERTISEMENT Kazakhstan’s strategic location and resource-rich economy present opportunities in sectors like electrical and electronics (E&E) and infrastructure development. The embassy is assisting Malaysian businesses with visas and investment guidance under President Kassym-Jomart Tokayev’s market-friendly reforms. Bilateral trade between Malaysia and Kazakhstan reached $134.7 million from January to November 2024. – Bernama