Gamuda Bhd (KLSE:GAMUDA) may submit a proposal to MMC Corporation Bhd (KLSE:MMCCORP) to jointly take over Keretapi Tanah Melayu Berhad (KTMB) operations in a deal worth more than MYR 5 billion. Sources familiar with the matter said Gamuda and MMC, a company controlled by Albukhary Foundation, are in discussions over the matter. “An agreement to jointly privatize KTMB is in the works.

Gamuda is awaiting MMC's response for a partnership to take over and privatize KTMB. The deal would require investments of more than RM5 billion,” the sources said. The government is also open to proposals on the privatization of KTMB.

MMC did not outline how it intended to turn around KTMB. They only talked about property development on KTMB's owned land. The takeover by MMC was expected to be funded by government-backed bonds.

Abdul Aziz Kaprawi, Deputy Transport Minister of Malaysia, had said there are no plans to privatize KTMB.