“We have to think of our long-term economic survival, as neighbouring countries around us have narrowed the competitiveness gap between us and them," said Nur Ismal.
KUALA LUMPUR: Despite the high indebtedness the country is facing, it appears to be increasingly necessary for Malaysia to keep up with its Asean peers and modernise the long-distance connectivity infrastructure.
This is the main argument that was put forth by the company responsible for the development and implementation of the Kuala Lumpur-Singapore High-Speed Rail (KL-SG HSR) project, MyHSR Corp Sdn Bhd.
MyHSR Corp, which is owned by the government, said at a media briefing yesterday that it is highly necessary the nation embarks on the KL-SG HSR project to sustain its competitiveness, especially in the region.
Good connectivity is also one of the components that investors would evaluate when assessing which country they should invest in while regional peers such as Indonesia, Thailand and Vietnam have already officially embarked on their HSR plans.
“We have to think of our long-term economic survival, as neighbouring countries around us have narrowed the competitiveness gap between us and them.
“So if we don’t do anything, they may surpass us in the future,” MyHSR Corp chief executive officer Datuk Mohd Nur Ismal Mohamed Kamal said.
“Countries around us have woken up and have started to do things on their own. What is going to happen if we don’t do anything is that they’re going to grow by leaps and bounds and suck out all the future investments from us,” he added.
This is also compounded by the Eastern Economic Corridor Development Plan that Thailand is embarking on, he said.
“They want to become the centre of growth for South-East Asia, to incorporate and attract investments in high-tech and innovative businesses, which will change the way their economy is structured.
“They plan to leave behind low-value-added contract manufacturing type of jobs that we still are very much in favour of.
“So if they are successful in that by having mobility greatly enhanced by their three HSR networks, and things are booming there, that means there are going to be less investment coming to us,” Nur Ismal said.
“And if the Jakarta-Bandung HSR line is able to replicate that, who is going to come and invest here in Malaysia?” he added.
MyHSR Corp also points out that the HSR infrastructure facilitates a greener environment, given its much lower carbon output, so this is another factor that can attract quality investments into the country.
“The (economic multiplier) effect of KL-SG HSR will be tremendous and we don’t want to be left behind. Also bear in mind, we are not just following blindly what other countries around us are doing.
“Improving growth will help lower the country’s indebtedness and the debt-to-gross domestic product (GDP) ratio since the GDP would rise. We need to think of the next generation,” said MyHSR Corp chairman Datuk Seri Fauzi Abdul Rahman.
“The effect of this project will improve the productivity of the economy as well. Our people should not be left behind.
“We have to improve productivity to pay our RM1.5 trillion debt. I can’t imagine just some three years ago, this debt was just RM600bil.
“If we don’t improve our GDP and productivity, I think Malaysia would be in trouble,” he added.
Meanwhile, MyHSR Corp head of commercial and economy Mohd Ikhsan Ahmad said the bigger plan by Indonesia is to link the two main cities Jakarta to Surabaya with the HSR.
“This will be an achievement for the Indonesian government. On top of this, we cannot deny that the Indonesian government is becoming more efficient now and on certain aspects they are almost parallel to our efficiency as well.
“So this is something we have to look at and mend how we can further move forward. This is very important and critical for our survival,” Ikhsan said.
The key difference of the new KL-SG HSR compared with the previous one that was scrapped in January 2021 would be that the revived project is being planned as a fully private initiative.
It will be on a build-operate-transfer (BOT) model that will have some concession years to it, said MyHSR Corp.
It will also be a fresh slate for the rail line should the private sector warm up to the plans by the government’s intention to carry on with the project.
The revived KL-SG HSR may see changes in stations or route alignment from the earlier plan that was scrapped.
MyHSR Corp said the party or consortium that will be building the project will by and large have to decide on these matters including on alignment and stations, with some recommendations or guidance given by the government.
“Any eventual land acquisition matters will be handled by us as well,” said Nur Ismal.
MyHSR Corp launched the request for information (RFI) yesterday to gauge the interest level by the private sector that might like to undertake the project.
It said the RFI would be opened to any party – local, foreign or a consortium of companies that might like to consider undertaking the KL-SG HSR.
“Ultimately, the RFI is to assess readiness and capabilities of the industry players. It is also to gather the model and funding structure and to gauge their interest in it,” Ikhsan said.
