The need for a railway arose when Parit Jawa, an area under Muar south of Bandar Maharani, required safe passage for the transportation of crops such as gambiers, coconuts and Pinangs.

As Parit Jawa was inaccessible to Bandar Maharani via land, transport of goods would have to be conducted by river and sea, which were exposed to pirate attacks.

On November 13, 1887, a discussion was held between Resident Tungku Sulaiman and the head for the Land Office and Agriculture Affairs of Muar district, Dato' Bentara Luar, which concluded with an agreement to construct a railway line between Bandar Maharani and Parit Jawa for dual uses: To transport passengers between the two localities, and to improve transportation of goods.

By 1915, the profitability of the MSR motivated the Sultan of Johor to suggest an extension of railway services up to the Batu Pahat river, but never materialised due to financial factors and geographical conditions.

This gave each trainset the ability to transport both freights and passengers, which partially contributed to the MSR's initial success.

In addition, the MSR's decision to utilise train sets accommodating both freights and passengers helped improve frequency of services and maximised each locomotive's potential.

Close inspection reveals this to be a crude fabrication using steel sheeting mounted on concrete stands, the only genuine parts being some wheels and couplings, put together as a children's toy.

A stop in Muar was planned for the Kuala Lumpur-Singapore high speed railway before its eventual cancellation in 2021.