As a strategic asset manager, RAC plays a vital role in optimising and transforming railway assets into sustainable sources of income for the government, while railway operations remain under KTMB’s management.
RAC RESPONSIBILITIES UNDER THE RAILWAYS ACT 1991 (ACT 463)
Under the Railways Act 1991, the Railway Assets Corporation (RAC) is entrusted with the following responsibilities:
Vesting of Railway Assets
All railway land held by the Federal Land Commissioner (FLC) and railway assets previously under the KTM Administration are vested in RAC
Asset Management and Development
RAC serves as the manager and strategic planner of railway assets, transforming and optimising these assets into valuable properties that generate sustainable and continuous returns for the Government
Assumption of Liabilities
RAC assumes the liabilities of the former KTM Administration, enabling the successor company, KTMB, to operate free from legacy debt burdens
Separation of Functions
While RAC manages railway assets, railway service operations are carried out by KTMB as the successor company.
Powers of RAC
Under the Railways Act 1991 (Act 463), RAC is empowered as follows:
To acquire, hold and benefit both movable and immovable property
[Section 89 (1)]
Provisions relating to establishment, membership and functions of RAC
[Section 89(2) and 89(8)]
To appoint a Chief Executive Officer
[Section 90(1)]
Vesting of KTM property in RAC
[Section 92(2)]