HSR cancellation more to do with M’sian politics, analysts say

KUALA LUMPUR – The termination of the Kuala Lumpur-Singapore High-Speed Rail (HSR) has more to do with Malaysian politics than bilateral ties, political analysts told Today Online.

Penang Institute executive director Ooi Kee Beng said the project was not conceived purely from a national economic standpoint, but is affected by many political interests.

Prime Minister Tan Sri Muhyiddin Yassin’s administration is weak, he said, and has been trying to stay in power since taking over Putrajaya in March.

“HSR would not have been among its priorities.”

He is also doubtful that the termination was about economic gains and losses.

“To start with, though, gains to the national economy from an HSR along the peninsula would have been greater if the project sought to connect Johor and Singapore to the Thai border, serving all major economic hubs along the way.

“The short version from Kuala Lumpur to Singapore lacked nation-building ambitions, and was more a mega project geared towards serving certain personal and political interests.”

Tasmania University’s Asia Institute director, Prof James Chin, agreed that Muhyiddin’s priority is to stay in power, and said the prime minister has been dodging calls for an early general election.

“After a year of Covid-19 and trying to restart the economy, the (Perikatan Nasional) government probably felt that this project was too closely tied to the old government, and so, some of the people involved in this new government are probably looking for something else.”

Law Associate Prof Eugene Tan of Singapore Management University, too, sees the matter as a case of “internal domestic concerns”.

“Any state government would want to try to have as many stops as possible within their state, (but) if there are more stops, then it is not an HSR anymore.

“They may have aligned stretches across, but whether they will be of the same standard, quality and speed remains to be seen. (If they give in to more stops), it then raises the question of why not use the KTM (Keretapi Tanah Melayu) instead? Why build a parallel line?”

The much-anticipated HSR was called off yesterday after both countries failed to reach an agreement, following the lapse of the project’s suspension period.

A joint statement by Muhyiddin and his Singaporean counterpart, Lee Hsien Loong, said both governments were unable to come to an agreement on several changes proposed by Malaysia, despite their discussions.

The changes were mooted in light of the impact of the Covid-19 pandemic on the economy.

In a separate statement, Singapore’s Transport Ministry said Malaysia has to pay compensation for costs already incurred.

As a result of the deal’s termination, it is said that Malaysia will have to pay RM300 million to its southern neighbour.

The 350km rail line would have significantly cut travel time between Kuala Lumpur and Singapore to just 90 minutes. Its bilateral agreement was signed in December 2016, under the administration of Datuk Seri Najib Razak.

The HSR, proposed to connect Bandar Malaysia in downtown Kuala Lumpur to a terminal in Singapore’s Jurong East, was initially slated for completion in 2026.

In May 2018, following the change in Malaysia’s government, the project was suspended for two years, before it was extended to December 31 last year.

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said Malaysia will undertake a detailed study on the viability of a domestic HSR, among other options.

In a statement yesterday, he said the country has been exploring a number of alternatives to reduce the cost of the Kuala Lumpur-Singapore HSR project since 2018, with the matter becoming more urgent with the onset of the pandemic.

These include changes to the project structure, alignment and station design, as the original requires substantial and long-term government guarantees.

By virtue of previously agreed terms, said Mustapa, Malaysia will honour its obligations, with both countries to determine the compensation amount.

However, former transport minister Anthony Loke yesterday said having a domestic HSR makes no sense.

He rubbished the PN government’s proposal, saying it should be dropped.

Such a project is redundant, given the ongoing RM10 billion double-tracking railway link between Gemas and Johor Baru slated for completion next year, he said.

“When this track is completed, it means that the existing double-tracking route between Padang Besar in the north will connect directly to Johor Baru in the south, making the Electric Train Service (ETS) operated by KTMB (Keretapi Tanah Melayu Bhd) available to the public.

“Although ETS is not as fast as HSR, in my opinion, it is sufficient for domestic services. The government only needs to allocate sufficient trains to increase the frequency of services.”

He also called on Putrajaya to be transparent on the compensation to Singapore. – The Vibes, January 2, 2021