KUALA LUMPUR (Feb 9) — Putrajaya Corporation (PPj) has decided not to proceed with the proposed Automated Rapid Transit (ART) system after an initial market assessment indicated that the project would be financially unfeasible.
Deputy Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Lo Su Fui said preliminary estimates placed the total cost of implementing the ART network—including infrastructure works, system installation, operations and maintenance—at approximately RM211.95 million over a 10-year period. For a local authority, the required funding was considered too high to sustain.
As a result, PPj has opted not only to cancel the initial rollout but also to refrain from pursuing any future route expansions involving the ART system under current financial conditions.
The ART concept involves a trackless tram operating on rubber tyres within dedicated lanes and guided by automated systems. A pilot programme for the technology was conducted from May to August 2024 through a collaboration between the Transport Ministry and PPj. Following the trial, the project proponent submitted a formal proposal; however, the submission was for evaluation purposes only and did not bind PPj to proceed.
Although the ministry did not officially identify the operator, earlier reports indicated that the pilot project was carried out by Mobilus Sdn Bhd, a joint venture involving Ireka Corporation Bhd and CRRC Urban Traffic Co Ltd.
Looking ahead, PPj has indicated it remains open to reviewing alternative financing approaches, including public-private partnership (PPP) models, subject to federal government approval. Any reconsideration of the ART concept would depend on a detailed analysis of costs, benefits, risks and fiscal capacity, and no financial commitments have been made to date.
To manage congestion in the meantime, PPj continues to enhance existing public transport services. Measures include the daily operation of seven Nadi Putra bus routes linking residential neighbourhoods, schools, commercial hubs, Putrajaya Sentral and government complexes. The administration is also gradually introducing Demand Responsive Transit (DRT) services to improve last-mile connectivity.
In addition, a broader transport master plan and action framework extending to 2050 is currently being prepared to address long-term mobility needs in the administrative capital.
For businesses and investors, transportation infrastructure decisions often play a critical role in shaping property demand and development patterns. Improvements in connectivity can influence leasing and investment activity in commercial property in KL, office space in Bukit Jalil, and logistics-driven segments such as industrial land in Selangor, factories in Puchong, and industrial property in the Subang area, where accessibility and transport efficiency remain key considerations for occupiers.
While the ART project will not move forward for now, ongoing planning efforts suggest that Putrajaya and the greater Klang Valley will continue exploring cost-effective mobility solutions to support future urban growth.
Vietnam