The government will review proposals to develop three plots of land belonging to Railway Assets Corporation (RAC) worth hundreds of millions of ringgit which had been given in principle to private developers, said Transport Minister Anthony Loke.

The proposals to develop the plots of land, estimated to be about 9.7ha (24 acres) in Pudu, Batu Tiga (Shah Alam) and Bangsar were approved by the previous BN-led government through direct negotiations.

“All the plots of land are in prime areas and there has been no signing ceremony, just agreements in principle. We will review the decision and I will discuss the matter at the coming cabinet meeting.

“We estimated the land value at around hundreds of millions. Even without open tender, the value is huge, imagine if we can open it to other developers, we are confident the price will go even higher. This will bring in huge profits to the RAC,” he said, without revealing the name of the private developers.

Loke was speaking to reporters after a working visit to the RAC office in Kajang today.

He said according to assessments made in 2017, the RAC had a total overall asset value of RM34.5 billion with 12,833ha (31,712 acres) of land.

He said all the land owned by RAC were close to the railway tracks and stations with a huge potential for development.

“The RAC has a lot of assets in the form of land which can be developed to its advantage. The returns could then be re-invested in Keretapi Tanah Melayu Bhd (KTMB) to improve their services,” he said.

Meanwhile, Loke said, there is an overlap of functions and responsibilities between the RAC and KTMB.

He said the RAC must go back to its original objective of managing assets connected to the railways while KTMB should focus on operating passenger and cargo services.

“Currently, there is a lot of overlapping, so I have asked that a restructure be carried out with a separation of roles.

“The process will be carried out through consultations with the staff and union to get their views and ensure that their welfare is taken care of,” he said.

- Bernama