The 24-month contract, which runs from 1 September 2026 to 31 August 2028, enables RAILTEC to offer maintenance services across the full spectrum of rail Maintenance, Repair and Overhaul (MRO) activities, from routine frontline servicing to complex heavy overhauls.
The latest award completes the company's journey towards becoming Malaysia's first home-grown rail MRO provider with capabilities spanning Levels 1 through 4, allowing it to support railway assets throughout their entire operational lifecycle.
Building a Comprehensive Rail MRO Portfolio
Established in 2021 as a joint venture between Destini Berhad and Keretapi Tanah Melayu Berhad (KTMB), RAILTEC initially focused on heavy overhaul works, securing contracts worth nearly RM700 million for the refurbishment of 35 Class 92 six-car train sets and 10 Class 93 Electric Train Sets (ETS).
The company further expanded its capabilities in 2025 after securing a RM71 million Level 3 MRO contract covering nine ETS 2 train sets.
With the addition of the RAC contract for Level 1 and Level 2 maintenance, RAILTEC now offers end-to-end rail engineering solutions covering routine inspections, scheduled servicing, component refurbishment and full fleet overhauls.
The development also supports Malaysia's broader agenda to strengthen domestic rail engineering capabilities and reduce reliance on foreign maintenance providers, in line with the objectives of the National Transport Policy (Dasar Pengangkutan Negara).
Strengthening Malaysia's Rail Industry
Rail MRO activities are generally divided into four maintenance levels:
Level 1 (L1): Routine inspections, servicing, cleaning and minor defect rectification.
Level 2 (L2): Scheduled maintenance and inspection of key systems and subsystems.
Level 3 (L3): Major component refurbishment, including bogies and traction equipment.
Level 4 (L4): Complete vehicle strip-down, structural rebuilding and life-extension overhauls.
According to Tuan Hj Ismail Mustaffa, Executive Director of Destini Berhad, the latest contract represents a major strategic milestone for the company.
"By combining our newly secured Level 1 and Level 2 capabilities with our existing Level 3 and Level 4 expertise, RAILTEC is now uniquely positioned to support railway operators across the entire maintenance lifecycle—from daily depot servicing to complex heavy overhauls. This strengthens our position as a comprehensive rail MRO provider while reinforcing Destini's role in advancing Malaysia's rail engineering ecosystem."
The RAC award further reinforces RAILTEC's long-term strategy of becoming a national champion in rail maintenance, supporting fleet reliability while contributing to the localisation of technical expertise within Malaysia's growing railway sector.
About Destini Berhad
Destini Berhad is a Malaysian integrated engineering solutions provider serving the aviation, defence, mobility, energy and marine sectors. The Group's businesses include rail and aviation MRO services, defence equipment supply, marine safety solutions, lifeboat manufacturing, and renewable energy engineering, procurement, construction and installation services.
