ZongXiang, a leading Chinese steel rail manufacturer, recently completed a significant export of 24kg steel rails to Malaysia, reinforcing its position in the global railway infrastructure market. This shipment aligns with Malaysia’s ongoing efforts to enhance its rail network, driven by regional trade initiatives and infrastructure development. The 24kg steel rail, known for its lightweight yet durable design, is ideal for secondary rail lines, industrial tracks, and urban transit systems, making it a strategic fit for Malaysia’s diverse railway needs.

The export deal underscores the growing economic ties between China and Malaysia, particularly in infrastructure-related trade. Malaysia’s rail sector has seen increased investment, with projects like the ASEAN Rail Express and the upcoming Perlis Inland Port, set to handle 300,000 container boxes annually by mid-2026, highlighting the demand for reliable rail materials. ZongXiang’s 24kg steel rails, manufactured to international standards, offer high tensile strength and corrosion resistance, ensuring long-term performance in Malaysia’s tropical climate.

This transaction also reflects China’s broader push to supply Southeast Asia with critical infrastructure components. ZongXiang leveraged its advanced production facilities and stringent quality control to meet Malaysia’s specifications, delivering rails that comply with regional gauge standards, unlike the challenges faced by Laos’ standard-gauge system interfacing with Malaysia’s metre-gauge network. The successful export was facilitated through efficient logistics, likely via the New International Land-Sea Trade Corridor, which reduces shipping time and costs between Western China and Southeast Asia.

The deal comes amid global trade complexities, including recent U.S. tariffs and China’s rare earth export controls, which have prompted Southeast Asian nations to diversify supply chains. Malaysia, a key trans-shipment hub, has seen surging imports, including a 3,400% increase in GPU imports in 2025, indicating its growing role in high-tech and industrial trade. ZongXiang’s ability to navigate these dynamics while securing the Malaysian contract highlights its competitive edge in the steel export market.

For Malaysia, the 24kg steel rails support its ambition to boost regional trade, projected to reach US$4.5 trillion by 2030 under ASEAN’s rail connectivity goals. The rails will likely be used in industrial sidings or urban rail expansions, contributing to efficient cargo and passenger movement. ZongXiang’s timely delivery ensures Malaysia can advance its infrastructure projects without delays, fostering economic growth and regional integration.

Looking ahead, ZongXiang aims to deepen its partnership with Malaysia, eyeing further opportunities in rail upgrades and maintenance. This export not only strengthens bilateral trade but also positions ZongXiang as a reliable supplier in Southeast Asia’s rapidly expanding rail sector, where demand for quality materials continues to rise.

Sources: Information on Malaysia’s rail projects and trade trends drawn from recent reports on ASEAN rail connectivity and China-Malaysia trade relations.