KUALA LUMPUR, Aug 9 — KTM Berhad’s (KTMB) assets should not be stripped and transferred to the Railway Assets Corporation (RAC) as it will lead to the death of the national institution, Opposition lawmakers claimed today.

Parti Pribumi Bersatu Malaysia (PPBM) president Tan Sri Muhyiddin Yassin said without any assets, the state-owned railway operator would eventually be in debt and would have to be closed down.

"In the current situation, with the steps taken to strip assets and place it under another organization, even if the assets are monetised, the money won't go back to KTM.

"This is a step to kill KTM. KTM should have control of its assets so it can monetise it to reduce the burden of cost," he said in a press conference today after meeting with the KTM Union members.

The Pagoh MP stressed that more steps should be taken to protect KTM as it was a national institution that has been the backbone of transportation in Malaysia for decades.

"From the discussions we have gotten is that the government, especially the Transport Ministry, KTM can't sustain itself in the future and will be closed down.

"Pakatan Harapan agrees that KTM must be maintained and taken care of as it is a heritage institute," Muhyiddin added.

DAP MP Ong Kian Ming meanwhile condemned the RAC, a government-owned agency under the Transport Ministry, saying it was pointless transferring KTMB’s assets over as the company does not have the expertise to handle such assets.

"They don't have the expertise to take care of RM36 billion in assets when they only have 38 employees," he said.

The Serdang MP predicted that in the future, if KTMB assets are held under the RAC, it might lead to an increase in public transportation prices.

"KTMB will shrink its operation significantly and others will come in to take over business.

"It will come under financial pressure and may be forced to sell. There will be an increase in KTM fares and also other public transport around Malaysia," Ong said.

The Railway Network Access Agreement (RNAA) is an agreement between RAC and KTMB, which will see the latter transferring all of its rolling stocks and lands to the latter. The exercise will reportedly be completed next year.

It is consistent with clause 89 of the Railway Act 1991, which aims to distinguish train service operations, which is managed by KTMB, from the ownership, management, and maintenance of the train assets that will be managed by RAC.