Malaysia Boosts Rail Sector with RM1 Billion SME Financing Initiative

KUALA LUMPUR, February 2026 — The development of a robust and competitive rail industry across Asia increasingly relies on the vitality of its small and medium-sized enterprises. These companies are crucial for driving innovation, providing specialized services, and supporting the complex supply chains required for modern infrastructure projects. Recognizing this, financial institutions are stepping up to provide targeted support.

MBSB Bank has announced a significant RM1 billion financing initiative dedicated to supporting small and medium-sized enterprises within Malaysia's rail sector. This strategic collaboration with the Malaysia Rail Industry Corporation (MARIC) aims to bolster the entire rail industry ecosystem by providing structured financing, engaging in industry-specific initiatives, and facilitating capacity-building efforts for technology providers and solution developers.

This substantial financial commitment is expected to empower Malaysian rail SMEs by addressing critical pain points and enabling them to commercialize innovative solutions. By bridging the gap between technological advancement and market readiness, the initiative seeks to enhance the competitiveness of local players and accelerate their growth, contributing to a more integrated and future-ready national rail network.

Datuk Azlan Shahrim, MBSB group chief strategy officer, highlighted the bank's intent to gain a deeper understanding of industry challenges to develop tailored financing. MARIC president Datuk Dr Mohd Yusoff Sulaiman emphasized the partnership's role in supporting capable SMEs and technology players, thereby strengthening Malaysia's position as an innovation-driven rail hub.

This proactive approach by MBSB Bank and MARIC aligns with a growing trend across Asia where governments and financial bodies are increasingly investing in specialized financing mechanisms to cultivate domestic rail capabilities and foster sustainable industrial development.

Source: The Star