Malaysia is set to build a RM9 billion double track electrified railway from the town of Ipoh to Padang Besar at the border with Thailand.

Deputy Prime Minister Najib Razak said the government decided to proceed with the project after completion of a major railway route connecting Ipoh to Rawang in Selangor, state Bernama news agency reported today.

"As the Rawang and Ipoh route has been completed, the government can optimise the project if the track is extended to Padang Besar," Najib said.

Najib said the government will confirm the cost of the project after negotiations were concluded between the companies and the finance and transport ministries.

The 330-kilometre double tracking project was awarded to construction giants MMC Corp and Gamuda Bhd consortium three years ago but was suspended when the government cut back spending on mega-projects.