The long-anticipated Langkawi light rail project has officially been cancelled after a Korean investor decided not to continue with funding. The news was confirmed by Kedah State Committee Chairman for Industry, Investment, Higher Education, Science, Technology and Innovation, Heinsiman, during a press conference on Thursday.
According to Heinsiman, the feasibility study for the project had been completed last year, but the investor ultimately concluded that moving forward would not be viable. The state government also expressed that launching large-scale projects like a maglev or light rail too early may not yield immediate benefits.
Despite the setback, the Korean company is reportedly exploring other investment opportunities in Kedah, particularly those focused on public transport-oriented development and commercial projects. Heinsiman added that the state government remains open to suggestions and alternative proposals from investors.
Exploring Alternative Investments for Kedah
Heinsiman highlighted that while the light rail project will not proceed at this stage, the growing population and increasing tourist numbers in Langkawi mean that demand for modernised rail systems could be reassessed in the future. The government aims to take a measured approach to large infrastructure projects to ensure long-term benefits.
The original light rail concept showed a coastal route connecting various scenic locations, a plan that had raised expectations among locals and tourists. However, without committed funding, the ambitious project could not proceed.
Investors and government officials will continue exploring smaller-scale and phased projects to improve connectivity in the region while avoiding unnecessary risks.
Perak’s Asset Sale Plan Also Falls Through
In a separate development, Perak-based company MJPerak announced the cancellation of its RM1.84 million asset sale in Ipoh. The sale was initially planned to facilitate business restructuring but could not meet the required conditions within the set timeframe.
The buyer, Ladang Lekir Private Limited, a wholly-owned subsidiary of the Perak Agriculture Development Agency, had requested a one-year extension to meet prerequisites. However, the company refused the proposal, leading to the plan being officially called off.
MJPerak confirmed that the decision was final and reiterated its commitment to evaluating other business strategies to strengthen its operations in Perak.
Local Reactions and Broader Implications
The cancellations of both projects have sparked discussions about investment risks and project planning in Malaysia. Industry experts note that while ambitious infrastructure and asset sales can bring economic benefits, careful feasibility assessments and investor commitment remain critical.
Meanwhile, residents and tourists in Langkawi continue to hope for improvements in transport infrastructure, though they may need to wait longer for large-scale solutions. Analysts suggest smaller, incremental developments may be more practical for now, ensuring safety and financial viability.
Both cases highlight the challenges governments and businesses face in balancing development ambitions with fiscal responsibility, particularly in areas with growing populations and increasing tourism demand.