20-9-2024 (KUALA LUMPUR) The Yang di-Pertuan Agong Sultan Ibrahim is reportedly looking to secure Chinese funding for the nation’s ambitious high-speed rail (HSR) project. Sources close to the matter, speaking on condition of anonymity, reveal that the monarch is targeting investment from a Chinese state-owned enterprise to breathe new life into the multibillion-dollar initiative.
The timing of this development is particularly noteworthy, as it coincides with Sultan Ibrahim’s four-day state visit to China at the invitation of President Xi Jinping. This visit, aimed at strengthening strategic ties between the two nations, commenced on Thursday and has fuelled speculation about potential collaborations under China’s expansive Belt and Road Initiative.
Adding weight to these reports, the royal delegation is said to include representatives from YTL Corp, a prominent Malaysian conglomerate. YTL is reportedly part of one of the three consortia shortlisted for the HSR project, as previously reported by The Edge Malaysia. Francis Yeoh, YTL’s executive chairman, had earlier expressed interest in the project during a Bloomberg TV interview, though he stopped short of confirming the company’s participation in the bidding process.
The HSR project, which aims to reduce travel time between Kuala Lumpur and Singapore to a mere 90 minutes, has had a tumultuous history. Initially projected to cost up to RM100 billion as a government-funded venture, it was postponed in 2018 by former Prime Minister Dr Mahathir Mohamad, citing financial concerns. The current administration under Prime Minister Anwar Ibrahim revived the project last year, with the crucial stipulation that it must not burden taxpayers.
Sultan Ibrahim, a long-standing advocate for the rail link, has previously suggested that a private consortium could fund and operate the project for three decades to recoup expenses before transferring it to the government. This aligns with the monarch’s vision of routing the HSR through Forest City, a property development in Johor with ties to Chinese developer Country Garden Holdings Co and a company partially owned by the Sultan himself.
The potential involvement of Chinese investors in this project is not without precedent. During a visit to Malaysia in June, Chinese Premier Li Qiang expressed China’s willingness to support major infrastructure developments in the country. This gesture of goodwill could pave the way for significant Chinese investment in the HSR project.
However, the path forward is not without obstacles. Transport Minister Loke Siew Fook, who is part of the royal delegation to China, has stated that the Malaysian government’s policy requires the project to be led by a consortium that is at least 51% Malaysian-owned. Additionally, for the project to proceed, approval from Singapore would be necessary. Singapore’s Prime Minister Lawrence Wong has indicated openness to fresh proposals on the rail link.
