MALAYSIA/ SINGAPORE, 18/07/2024 (Asia News Channels) - Malaysia is set to decide in the coming months on the development of a multibillion-dollar high-speed rail line between Kuala Lumpur and Singapore. Prime Minister Anwar Ibrahim’s administration is reviewing proposals from a narrowing list of private consortiums.
Transport Minister Loke Siew Fook announced that the Malaysian cabinet aims to determine the project's feasibility by the end of the fourth quarter. "Once we have a policy decision to proceed with the high-speed rail, we will start negotiations with Singapore," Loke stated.
The government has shortlisted three out of seven consortiums that submitted proposals following a request for information issued late last year. According to The Edge, YTL Corp, Berjaya Land Bhd, and China Railway Construction Corporation are among the shortlisted groups. YTL and Berjaya are led by tycoons Francis Yeoh and Vincent Tan, respectively.
The 350km rail line, which aims to reduce travel time between Kuala Lumpur and Singapore to 90 minutes, was first approved in 2013 but scrapped seven years later due to cost disagreements.
In December, Sultan Ibrahim of Johor expressed support for reviving the project and proposed a route via Forest City, a large-scale development on the Singapore Strait in which he holds a stake. Sultan Ibrahim became Malaysia’s king in January under the country's rotating monarchy system.
The project, initially estimated to cost RM100 billion (US$21.4 billion) as a government-funded venture, might see reduced costs based on the selected proposal. Minister Loke mentioned that while the government does not rule out assistance for the project, it is not inclined to provide a guarantee, as this would increase Malaysia’s debt burden. "We definitely do not want to increase our liability," Loke said.
The high-speed rail line could become a key component of a network of Beijing-backed railways connecting China with the region. Malaysia is on track to complete a China-built rail line bridging the east and west coasts of Peninsular Malaysia by the end of 2026, with services expected to commence the following year. Discussions with Thailand aim to link this project to its rail network, ultimately connecting more of Southeast Asia to China by rail. "I’m sure we can continue to push and convince our counterparts from Thailand, Laos to take part in this whole thing," Loke concluded.
-- ASIA NEWS CHANNELS