Earlier this month, Cambodia’s Ministry of Public Works and Transport, together with the Asian Infrastructure Investment Bank, announced plans for Phnom Penh’s first metro system. The proposed network—four lines and over 100 kilometers—is the latest signal of Southeast Asia’s growing appetite for modern urban transit.
Across the region, densely populated cities plagued by traffic congestion and uneven development are turning to metro systems as a solution. Indonesia’s President Joko Widodo recently launched the Jakarta Mass Rapid Transit East-West Corridor Phase 1 worth approximately $4.8 billion to ease the capital’s traffic woes. In Vietnam, the government plans to raise nearly $50 billion by 2045 to construct a 600-kilometre metro network in Hanoi. In Malaysia, urban rail transit projects under construction are valued at over $14 billion. The list goes on…
The momentum reflects a broader regional shift amid its expanding industries. According to the Asian Transport 2030 Outlook, urban rail development is poised to outpace any previous period. Between 2000 and 2020, Asia added over 10,000 kilometers of urban rail. That figure could double by 2030. Metro systems are expected to account for the lion’s share of this growth.
This infrastructure boom is not without its challenges. Funding requirements are immense. Asian Transport Observatory estimates that investment in inland transport in Asia and the Pacific may need to triple compared to the 2010s. However, financing infrastructure investment is becoming a growing challenge for many Asian economies as public finance is under pressure as a result of COVID-19-induced economic
Recession, Asia Development Bank noted.
Complexity, cost overruns and delays also persist. Ho Chi Minh City’s Metro Line 1, undertaken by Japanese contractor, took 17 years to complete its modest 19.7 kilometers. In Jakarta, the East-West MRT line, which was supposed to complete last year, is facing significant delays, with completion unlikely before 2031. Many projects have stalled due to financing gaps, regulatory hurdles, or technical bottlenecks. Malaysia’s Kelana Jaya LRT line has faced public scrutiny over technical issues, while Bangkok’s fragmented ticketing systems illustrate how operational efficiency remains a work in progress. Patchy supporting infrastructure, sparse routes, and high fares are undermining the popularity of public transit among the public. A survey by Jakpat indicates that approximately 30% of public transport users in Indonesia rely on shared facilities 2-4 times a week, while 72% of private vehicle owners hit the road daily.
In parallel, emissions from the transport sector continue to rise. The Asia Transport Observatory estimates that transport-related CO₂ emissions will keep increasing and are unlikely to peak before 2030, with annual growth projected at 1.5% this decade. This places added pressure on planners to priorities energy-efficient systems and account for the long-term environmental costs of infrastructure choices. Indonesia, for example, aims to fully electrify its public transport by 2030.
Amid these complexities, regional policymakers are prompted to reassess how they manage such large-scale transport infrastructure. Vietnam’s Ministry of Construction, for instance, hopes to localise rail technology—particularly in rolling stock and control systems—but sets a realistic timeline beyond 2030. Before that, the country aims to learn from China’s experience, citing its advanced rail construction and operations, strong organizational coordination, and state-of-the-art technology, as noted by an official from Vietnam’s Ministry of Transport.
China, with the world’s largest metro network and biggest rail transport industry that takes up over 30% of the world’s total, has seen its urban transit build-out expanded fourfold over the past decade, now spanning over 5,000 kilometers. Its metro systems recorded historical 30 billion trips in 2024, while more than 50 fully automated lines are already in operation.
Cutting-edge new materials and digital tools are being deployed, reducing energy use, emissions and maintenance costs. In Beijing, where nearly half of commuters opt for rail transit, AI Rail Doctor improves rail flaw detection efficiency by 150%. In Qingdao, the launch of the world’s first lightweight carbon-fibre metro train has cut energy consumption by 7% and maintenance expenses by 22% through its digital maintenance platform. Hangzhou’s solar-powered Metro Line 2 is on track to become the country’s first carbon-neutral metro line, projected to cut carbon emissions by approximately 70,000 metric tons annually.
“China leads globally in lightweight metro train technology and hauling systems, featuring advanced linear induction motors and permanent magnet systems rarely seen elsewhere,” said Oscar, Market Manager at Weilan Rail Transit Big Data Center, a think tank based in Beijing.
“Beyond exporting complete rail transit vehicles, China now delivers full-system solutions—including signaling, power supply, and electromechanical systems—all under unified Chinese standards, that are increasingly adopted in other developing countries” he added.
Precision engineering and tightly coordinated operations underpin the efficiency of urban rail systems in this rail transport powerhouse. During peak hours, trains depart at intervals of less than five minutes, some within two minutes. According to China Association of Metros, the average delay rate exceeding five minutes stands at just 0.103 occurrences per million train-kilometers. Operating costs are competitive: approximately ¥33.42 (under $5) per vehicle-kilometer, compared to $31 for the London Underground and $9 for New York’s subway. Energy consumption is also modest, averaging 3.54 kilowatt-hours per vehicle-kilometer.
Governments across Southeast Asia are closely monitoring these developments and actively seeking to strengthen their domestic capabilities through strategic partnerships. In Malaysia, collaboration with China has resulted in the debut of the world’s first hydrogen-powered autonomous rail rapid transit (ART) system. The China–Malaysia Modern Rail Technology Institute has also developed a range of professional curricula and vocational training standards tailored to the needs of the East Coast Rail Link, contributing to the cultivation of local railway expertise. Philippines entrusted the construction of its first intra-city metro in Makati to a Chinese firm. Cambodian Prime Minister Hun Manet has expressed his hope that Chinese companies will continue investing in key infrastructure projects, including metro and light rail systems.
With urban populations rising and climate targets looming, urban rail systems are no longer optional. For Southeast Asia, building the right networks—and choosing the right partners—may shape the region’s development trajectory for decades to come.
Muhammad Zamir Assadi