KL-Singapore HSR project postponed, not scrapped, says Dr Mahathir

KUALA LUMPUR — The proposed high-speed rail (HSR) project connecting Malaysia’s capital city to Singapore has not been cancelled but merely postponed, Malaysian Prime Minister Tun Dr Mahathir Mohamad said, softening his earlier intention to scrap the deal entirely.

In an interview with Japanese media published in the Asian Nikkei Review on Monday night (June 11), Dr Mahathir explained that the project was put on the backburner because of its exorbitant cost of RM110 billion (S$37 billion).

“We cannot say we will never have high-speed rail in Malaysia. What we can do is we can postpone the project because it is far too costly at this moment,” he was quoted saying in a question-and-answer session.

The premier said last month the 350km rail project - inked under former prime minister Datuk Seri Najib Razak in 2016 - had to be cancelled as it did not benefit the country and the government has to drastically cut spending and investment to “avoid being declared bankrupt”, after revealing that the country's debt has spiralled to more than RM1.09 trillion.

He said the decision was final but days later, appeared to soften his stance by saying he will hear Singapore out if the Republic requests to continue the project.

“We will listen to them. They are our good partners,” he had said on May 30, adding that he was agreeable to revisiting the HSR and other mega projects once Malaysia's finances are better.

Still, Dr Mahathir's move to scrap the HSR was criticised by Mr Najib, noting that it will result in the Malaysian government missing out on around RM650 billion in Gross National Income (GNI) and some 442,000 job opportunities.

Following Dr Mahathir's earlier remarks on the matter, Singapore's Transport Ministry said it had yet to receive an official notification from Putrajaya of the decision to call off the project.

Days later, the Republic's transport minister Khaw Boon Wan said Singapore has requested the Malaysian Government to clarify its position on the project.

Mr Khaw also said should Malaysia terminate the HSR project, Singapore will study the implications and exercise its rights, including compensation for expenses incurred, in accordance with the terms of the bilateral agreement inked earlier.

Mr Khaw's Malaysian counterpart Anthony Loke said on Tuesday a negotiating party consisting of the Finance, Economics Affairs, and Transport ministers will make a trip across the Causeway to iron out a deal concerning the HSR.

“As it was announced last week, we will still negotiate with Singapore. We, the Finance, Economic, and Transport ministers will go to Singapore and negotiate this deal,” Mr Loke said.

To be completed in 2026, the project would have cut travelling time between Kuala Lumpur and Singapore to 90 minutes, from about four hours by car.

It had been touted by leaders from both sides of the Causeway as a game-changer that could bring about closer ties between the two countries and their peoples.  

In the interview with the Japan daily, Dr Mahathir also said the government will rethink the project to cover longer distances, “right through the peninsula”, to make HSR travel worthwhile.

“High-speed trains are most effective where the distance is very long. But where the distance is short, it doesn't contribute much,” he added. AGENCIES