An artist’s impression of Batu Pahat station on the Kuala Lumpur-Singapore HSR line. If the investment was worthwhile, the green light for the project would have been given by now.
MALAYSIANS have been told for months that the high speed rail (HSR) project between Kuala Lumpur (KL) and Singapore might be revived.
Although the idea has been re-floated and news has been published about interested consortia, the crux of the issue remains unaddressed.
A key lingering question is what makes the HSR project worthwhile?
HSR has generated some excitement since it was conceptualised. There were studies conducted and the public was informed that it would be possible to travel between Kuala Lumpur and Singapore within 90 minutes at the cost of a budget airline ticket. Several cities along the routes were deemed to be potential hubs of economic activity when the HSR is completed.
Bandar Malaysia was mentioned as the main station for the HSR, bringing with it the vast construction potential to create high-rise buildings and jobs.
It was mostly consultant-talk until reality started to set in. It is going to be too costly. Moreover, building more commercial space at Bandar Malaysia would result in a loss of tenancies in other parts of KL.
Viability is of concern with two previous governments questioning if the project should proceed. The first Pakatan Harapan government cancelled the project and paid Singapore compensation of S$102mil (RM340.73mil) for its troubles.
There was a flicker of hope for the proponents when the government then was asked whether the project should be revived but the suggestion was subsequently rejected.
There’s a twist again with the present Pakatan government rekindling the idea but it comes with a big caveat — there will be no government guarantee for the project. That would mean that the government will not partake in the land acquisition and not provide funding, or guarantees, for the the gargantuan project.
Given such constraints, should the project go ahead?
On the surface it appears unlikely with reports pointing to the Japanese parties pulling out, a clear indication the project is not viable without government financial support.
There is good reason to doubt the feasibility of the HSR.
Malaysia will pay the price for the construction of the ECRL, which changed its project viability once it eliminated the industrial parks that were supposed to be scattered along the route, which would turn semi-finished goods into the final product before shipping.
The ECRL will mainly be a people carrier, shuttling passengers between the east and west coasts. Time will show if the project will make money. It does not seem so as it was reported that the go-ahead for the project is more of maintaining good relations with China than making a profit.
Considering the potential shortfall of the ECRL project, the HSR is just a vanity project that won’t make money for the country.
There is no shortage of ways to get to and from Singapore. We have a good highway network for cars and buses. Air travel is also popular, with the KL-Singapore route being among the busiest in the world.
The soon-to-be completed double tracking project to Johor Baru will connect the city to the north of the peninsula. From there it is a quick ride via the RTS link that is being constructed and will be connected to the Woodlands MRT network in Singapore.
It will make more sense to widen the gauge of the double tracking project that can cater to faster trains. It will be cheaper than building the HSR.
It does not the make sense for a HSR network to be connected to Jurong East, which Singapore wants to turn into its second city. It is of no concern to Malaysians who want to go Singapore.
Then there is the cost factor. Whether it is RM70bil or less, the government will be on the hook to pay off the lenders of the project because the final recourse is on its shoulders. That is one reason the Kulim International Airport was not given federal approval because should it fail, taxpayers will have to bear the burden.
Associating the HSR with investments is foolish. Malaysia is already attracting vast foreign investments without the HSR. There is no need to stroke egos. If the investment was worthwhile, the green light would have been given by now.
This article first appeared in Star Biz7 weekly edition.
