KUALA LUMPUR – The cabinet will decide very soon if the proposed high-speed rail (HSR) project linking Kuala Lumpur and Iskandar Puteri in Johor is as viable as the original alignment planned for Singapore, the Dewan Rakyat was told.
Economic Affairs Minister Datuk Seri Mustapa Mohamed (Jeli-Bersatu) said a study into the proposed KL-Johor line was completed a couple of months ago and will be tabled in the cabinet soon.
He added that the cabinet will be given three options to select on, namely whether to indefinitely suspend the project, cancel it altogether, or to make amendments to the proposed model.
Mustapa said the study had included, among others, the economic spillover effect of the new line ending in Johor as compared to the one from KL to Singapore.
“We are not questioning the viability of the KL-Singapore alignment, it is no doubt viable. But the issue with this is the implementation. We have differences with Singapore.
“The study we recently conducted was to find out if the KL-Johor HSR project is still viable. We will make a decision soon,” he said today.
He was responding to questions from MPs on the economic impact of the KL-Johor HSR line and on the government’s decision not to move forward with the assets company known as AssetsCo to oversee the KL-Singapore line as proposed by the neighbouring country, resulting in the termination of the original line.
Mustapa said upon reviewing the agreement with Singapore, Malaysia felt that there are other cheaper alternatives than appointing AssetsCo, particularly in light of the Covid-19 pandemic.
“We felt it is wise for us to relook at the cost of the KL-Singapore HSR, and that is why we decided to propose to Singapore to get rid of AssetsCo. This wasn’t agreed to.”
The minister said any possibility of reviving the project with the republic state is still at an early stage.
Singapore had agreed to Malaysia’s proposal to renegotiate the project, following a meeting between the two prime ministers on November 29.
The HSR project was first initiated by then Datuk Seri Najib Razak’s government, but was suspended by the Pakatan Harapan administration after the 2018 general election, due to the high cost of the project.
Following termination of the project, Malaysia paid Singapore RM320 million in compensation. – The Vibes, December 9, 2021
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