CEO of Malaysia’s Land Transport Authority (SPAD) Mohd Azharuddin Mat Sah says the authority is currently engaged in a request for information process for contracts to build this new railway line, which plans to connect Kuala Lumpur with Bantung in Pahang province and run through the Terranganu province to Tumpat in the north east province of Kelantan, bordering Thailand. The 600-kilometre standard-gauge line will have trains operating at up to 200 kilometres per hour.

"At the moment all of the rail links are on the western side of the peninsula. While we do have a rail link at the eastern side, it only covers rural areas. The new line will serve major towns in this area of the country," Mr Azharuddin said. "A new railway is critical to develop the states in this area and bring them up to par with the western states.”

Mr Azharuddin also said that in addition to boosting passenger connectivity, the new line is also a part of a strategy to increase freight traffic on the Malaysian rail network as it will serve established industrial areas. He added that the development process for the project will take seven to eight years to complete but at this stage there is no agreed completion date for the line.

"We have to complete this RFI exercise and then we need to present it to the economic council," Mr Azharuddin said. "We need to do the economic part of it to work out the benefits, and how to finance it. We are looking at models of support from the private sector but we think the case is strong."

This proposed East Coast Railway is announced amidst another rail project in progress. The MoU for the proposed high-speed line from Kuala Lumpur to Singapore is expected to be signed by both parties in the coming months and a tender for construction to be issued in 2017.