Sustainability

Moving towards net-zero transport

• ROAD TO RAIL INITIATIVE

  Currently, more than 90% of domestic cargo transportation is handled via road. This heavy reliance results in higher logistics costs, traffic congestion, and significant carbon emissions. Additionally, there has been a notable increase in road accidents involving heavy vehicles. In response, Railway Assets Corporation (RAC) has taken strategic steps by supporting the “Road to Rail” initiative introduced by the Ministry of Transport Malaysia (MOT) through three main approaches:

  Infrastructure Enhancement

  Developing six strategic cargo hub terminals located in Pasir Gudang (Johor), Mengkibol (Johor), Pulau Sebang (Melaka), Senawang (Negeri Sembilan), Merapoh (Pahang), and Behrang Station (Perak). These cargo hubs are expected to handle more than 400,000 TEU annually and reduce approximately 700,000 truck trips on the roads.

  Public-Private Collaboration

  Establishing strategic partnerships with logistics operators and industry players to optimize construction and operational costs for cargo facilities, thereby reducing the Government’s financial burden.

  Digital Integration

  Ensuring each cargo hub is equipped with modern applications and technologies to improve rail freight scheduling and tracking systems for greater operational efficiency.

  The implementation of the “Road to Rail” initiative is not only aimed at providing a more efficient logistics network but also at driving sustainable economic growth and creating a greener, safer transportation ecosystem for the nation.

• SOLAR PANEL INSTALLATION AND EV FACILITIES

  In alignment with the national Net Zero Carbon Emission agenda by 2050, RAC has advanced initiatives in renewable energy adoption and low-carbon mobility through two main projects:

  Solar Photovoltaic (PV) Panel Installation

  RAC is actively installing solar PV systems on the rooftops of selected railway stations. This initiative aims to optimize electricity consumption, reduce operational costs, and minimize the stations’ carbon footprint sustainably. RAC has installed solar PV systems at 12 stations, expected to be operational by 1 May 2026. The solar panels are projected to generate approximately annually.

  Electric Vehicle (EV) Charging Facilities

  To promote a green transportation ecosystem, RAC is also developing EV Charging Station facilities at parking areas of major railway stations. This integration enables EV users to utilize the Park & Ride system with assurance of sufficient vehicle charging availability.

  These initiatives not only enhance the value of RAC’s existing assets but also strengthen the role of railway stations as Sustainable Transportation Hubs that are environmentally friendly and technologically advanced.

Accelerating Growth and Fostering Social Value.

• CONSTRUCTION OF LIFTS AND OKU (PERSONS WITH DISABILITIES) FACILITIES AT RAILWAY STATIONS

  Throughout the year 2025, Railway Assets Corporation (RAC) reinforced its ESG commitment through the completion of 30 strategic projects specifically designed to promote sustainable mobility and community well-being.

  The implementation of these projects is structured according to the core ESG impacts as follows:

  • Enhancing Inclusivity and Accessibility (Social)

    Barrier-Free Mobility

    Completion of 6 new passenger lift projects at major railway stations to ensure rail facilities are friendly to persons with disabilities (OKU), senior citizens, and parents with strollers.

    Educational &  Infrastructure

    Completion of 1 CSR covered walkway project in Segamat, providing safe and comfortable access for school students and local residents.

    Passenger Well-being

    Development of 9 DMU platform projects in the East Coast sector to improve rail service quality in rural areas.

  • Empowerment of Sustainable Transport Ecosystem (Environmental & Social)

    Smart Space Management

    Development of 1 multi-storey car park project at Rawang Station and 5 parking facility projects in the northern corridor to support the Park & Ride concept. This initiative aims to reduce road congestion and carbon emissions by encouraging the modal shift from private to rail transport, which is greener and more sustainable.

  All these initiatives are not merely physical enhancements but represent RAC’s social investments in providing a safe, comfortable, and inclusive transportation ecosystem. By strengthening first-and-last mile connectivity, RAC continues to lead the national rail transformation agenda towards the Net Zero target and the development of resilient communities.

• SAFETY AND HEALTH PROGRAM

  As part of its commitment to workplace safety and social responsibility, Railway Assets Corporation (RAC) has established an Emergency Response Team (ERT) and conducted intensive training programs in Emergency First Aid, CPR & AED.

  This initiative is designed to achieve the following strategic objectives:

  Enhanced Organizational Preparedness

  Empowering RAC personnel with critical skills to provide prompt and accurate assistance during medical or technical emergencies.

  Rapid Response Efficiency

  Ensuring effective early intervention while awaiting the arrival of professional agencies such as the Malaysian Fire and Rescue Department (JBPM) and the Ministry of Health (MOH), thereby increasing the chances of saving lives.

  Optimal Protection of Assets and Lives

  Minimizing injury risk and property damage through systematic and structured emergency response protocols.

  Compliance and Governance

  Fulfilling legal requirements under the Occupational Safety and Health Act (OSHA) and adhering to ESG principles in creating a safe and resilient workplace environment.

  Through such training, RAC not only develops competent personnel in safety aspects but also fosters public confidence in the safety standards of RAC-managed rail facilities, demonstrating comprehensive corporate commitment to human-centered values.

• LEADERSHIP DEVELOPMENT PROGRAM

  Through its Human Resources Division, RAC has launched a Leadership & Development Program aimed at enhancing leadership competency among department and unit heads for the year 2026. RAC places strong emphasis on leadership development to ensure that the organization’s direction remains rooted in excellence and integrity.

  Strategic Leadership Development

  Embedding sustainable leadership values to enable top management and supervisors to effectively drive organizational and digital transformation initiatives.

  HIGH-PERFORMANCE WORK CULTURE

  Through continuous leadership training, RAC aims to develop a cadre of leaders who are competent, ethical, and data-driven in their decision-making, ensuring the best outcomes for stakeholders and the community.

  Talent Sustainability 
  (Succession Planning)

  Ensuring leadership continuity through structured mentoring and coaching programs, thereby maintaining strong and stable governance in the long term.

• ESG TRAINING PROGRAM

  To strengthen knowledge and provide comprehensive exposure for all RAC employees on the importance and implementation of Environmental, Social, and Governance (ESG) initiatives, the [Program Name] ESG Training Program was successfully conducted.

  The program achieved encouraging results, with 90% of employees participating in the training sessions. The training aims to ensure all employees share a unified understanding and strong commitment in supporting and implementing RAC’s ESG-driven initiatives.

Championing Ethical Excellence.

As a manifestation of excellence in Governance, RAC successfully obtained ISO 9001:2015 Quality Management System Certification in 2025 — a significant milestone in ensuring all organizational operations meet international standards.

The importance of this certification within RAC’s ESG framework includes:

The ISO 9001:2015 certification demonstrates that RAC is not only focused on asset development but is also committed to building an organization that is competitive, transparent, and governed to world-class standards — fully aligned with the core principles of ESG.