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KUALA LUMPUR: The Malaysian government intends to continue with the Kuala Lumpur-Singapore high-speed rail (HSR) project as it may “generate a positive multiplier effect on the national economy,” said Finance Minister Tengku Zafrul. Aziz. on Friday (November 6).
However, this also depends on ongoing discussions with the Singapore government, he added.
His comments were made while presenting the 2021 national budget in parliament, which the government says is intended to help the country cope with the economic impact of COVID-19.
In his budget speech, Mr. Tengku Zafrul described the government’s commitment to implementing transportation infrastructure projects that will benefit the people.
He said that in 2021, RM15 billion (US3.63 billion) will be used to finance projects such as the Pan Borneo highway, the Gemas-Johor Bahru railway electrified double-track project and phase 1 of the Klang Valley double-track project.
In addition to that, other projects that will continue are the RTS Link project from Johor Bahru to Woodlands and the MRT line in the Klang Valley area.
READ: Malaysia’s economy is projected to grow up to 7.5% next year, says the government while presenting an expansive budget for 2021
The minister said: “Basically, the government intends to continue the HSR project because this project is capable of generating a positive multiplier effect in the national economy. However, this also depends on continuing discussions with Singapore.
Malaysia’s Finance Minister Tengku Zafrul Tengku Abdul Aziz. (File photo: Bernama)
In September 2018, Singapore and Malaysia agreed to postpone the construction of the HSR until the end of May this year. Malaysia had to pay Singapore S $ 15 million for the costs incurred to suspend the project.
Malaysia subsequently requested an additional seven-month extension to allow both parties to discuss and evaluate Malaysia’s proposed changes to the project.
Mr. Khaw Boon Wan, who was Singapore’s Minister of Transport at the time, agreed to the “final extension of the suspension period” until 31 December.
Both countries had also announced that HSR service was expected to begin on January 1, 2031, rather than the original start date of December 31, 2026, as a result of that suspension.
The proposed HSR line aims to reduce travel time between Singapore and Kuala Lumpur to about 90 minutes by train, from the current 11 hours on existing train services.
When operational, the line will offer an express service between Kuala Lumpur and Singapore, a national service from Kuala Lumpur to Iskandar Puteri and a shuttle service from Iskandar Puteri to Jurong East.
