Weekly Highlights

RM320 Million Is The Cost Of PN Breaking Its Promise To Continue The KL-Singapore High Speed Rail(HSR) Project.

Malaysia suffered a loss of S$102.8 million(RM320million) in the form of compensation paid to Singapore for aborting the Kuala Lumpur-Singapore High-Speed Rail(HSR) project. This RM 320 million loss is the cost of the PN government breaking its public promise to continue with the HSR.

The PN government had wanted to make changes to the rail line, which was not agreed to by Singapore. Further, the termination of HSR and compensation highlights Muhyiddin’s lack of commitment towards open tender and transparency.

Singapore’s Transport Minister Ong Ye Kung said that the main reason why both countries could not reach an agreement on the HSR project was because Malaysia wanted to do away with the jointly-tendered asset company (AssetsCo). Ong added that through an open and transparent international tender, the AssetCo would have ensured accountability to both countries.

PH had not questioned the rationale for the HSR project but disputed the exorbitant pricing and the cost structure agreed to by the previous BN government. The HSR project is not financially viable if its rail line does not pass through Singapore. The PN government had announced instead that the project would continue in a different form by stopping in Johor Baru, not in Singapore.

This is not feasible as it raises questions about project’s financial sustainability as well as limiting its positive economic impact to the country, if the HSR does not stop in Singapore. There is no doubt that Johor will be the greatest loser from the cancelled HSR project.

At the moment the people of Selangor, Negeri Sembilan, Melaka and Johor are still waiting for progress on the alternative project. Is the PN government still interested in running a government for the people’s benefit or engaging in a fratricidal civil war for political survival?

Lim Guan Eng

Secretary General of DAP

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