18-7-2024 (KUALA LUMPUR) Malaysia is on the cusp of a momentous decision regarding the proposed high-speed rail connection between Kuala Lumpur and Singapore. Prime Minister Anwar Ibrahim’s government is meticulously evaluating proposals from a select group of private consortiums, with a final verdict expected in the coming months.
Transport Minister Loke Siew Fook, speaking in a recent interview, expressed optimism that the Malaysian cabinet would reach a conclusion on the project’s viability by the end of the fourth quarter. “Once we have a policy decision to proceed with the high-speed rail, we will initiate negotiations with Singapore,” Loke stated, highlighting the international dimension of this ambitious venture.
The government has already narrowed down the field of contenders, shortlisting three out of seven consortiums that submitted proposals following a request for information late last year. While the identities of these shortlisted companies remain undisclosed, industry insiders suggest that proposals led by YTL Corp, Berjaya Land Bhd, and China Railway Construction Corporation are in contention. These firms, helmed by prominent Malaysian tycoons Francis Yeoh and Vincent Tan, alongside Chinese interests, underscore the project’s potential to attract both domestic and foreign investment.
Emphasising the strategic importance of the project, Loke confirmed that the government’s policy mandates at least 51% Malaysian ownership of the consortium that will ultimately be awarded the contract. This stipulation aims to ensure that control of this critical infrastructure remains firmly in Malaysian hands.
The proposed 350-kilometre rail line, which aims to slash travel time between Kuala Lumpur and Singapore from over four hours by car to a mere 90 minutes, has had a tumultuous history. Initially approved in 2013, the project was shelved in 2020 due to disagreements over costs and other factors. However, it has recently gained renewed momentum, partly due to high-profile endorsements.
Notably, the Sultan of Johor, who ascended to the position of Malaysia’s king in January under the country’s unique rotating monarchy system, has thrown his weight behind the project. The Sultan has even suggested routing the line through Forest City, a mega-development in which he holds a stake, potentially adding another layer of complexity to the planning process.
While previous estimates pegged the cost of the government-funded project at up to RM100 billion (US$21.4 billion), Minister Loke hinted that private sector involvement could potentially lower this figure. However, he was quick to emphasise that the government is wary of providing guarantees that could add to Malaysia’s debt burden. “We definitely do not want to increase our liability,” Loke asserted, adding that alternative incentives for the private sector are being considered.
The project’s significance extends beyond Malaysia and Singapore, potentially becoming a crucial link in a broader network of Beijing-backed rail lines connecting China with much of Southeast Asia. Loke revealed that Malaysia is on track to complete its China-built east-west rail line across Peninsular Malaysia by the end of 2026, with services set to commence the following year.
Furthermore, the Transport Minister disclosed ongoing discussions with Thailand to connect their rail networks, part of a grander vision to create a seamless rail corridor linking Southeast Asia to China. “I’m sure we can continue to push and to convince our counterparts from Thailand, Laos to take part in this whole endeavour,” Loke remarked, underscoring the project’s potential to reshape regional connectivity.
