The Malaysian International Chamber of Commerce and Industry (MICCI) and a tourist association said the link would bring economic benefits to the country, but economist Barjoyai Bardai felt the billions of ringgit that the project will cost could be put to better use.
During a recent visit to Malaysia, Singapore’s deputy prime minister, Lawrence Wong, told Prime Minister Ismail Sabri Yaakob the island state was open to fresh proposals to revive the project.
MICCI executive director Shaun Cheah said Malaysia would benefit economically from the revival of the project as it would generate greater exchange of goods, services and people between the neighbours.
“Singapore is a regional hub for many multinational corporations, especially in the information technology sector,” he told FMT. “The HSR project would incentivise these companies to move their operations to Kuala Lumpur because of Malaysia’s lower cost base.”
Jimmy Leong, who chairs the Johor Tourist Guides Association, said the rail link would boost the local tourism sector due to the better connectivity not only between the two cities but also places in between such as Batu Pahat and Muar in Johor.
However, he said a proper study should be carried out to ensure the project’s cost was sustainable and affordable for all involved.
Barjoyai, of Universiti Tun Abdul Razak, said while the HSR project would be beneficial in the long term, it was a luxury Malaysia could do without given the country had more pressing matters to attend to.
He said the government should prioritise reducing its poverty rate by investing in reskilling, retraining and repositioning workers as well as by encouraging entrepreneurship and technological development.
If the project were to be revived, he said, it should be led by the corporate sector rather than the government to ensure its commercial viability.
Malaysia and Singapore signed an agreement to commence the 350km HSR project, aimed at reducing travel time between Kuala Lumpur and Singapore to about 90 minutes, in December 2016.
It was discontinued after multiple postponements at Malaysia’s request and an eventual lapsing of the agreement in December 2020.
Malaysia paid more than S$102 million (RM328 million) in compensation to Singapore for the terminated project.
Originally scheduled for completion in 2026, it was estimated to cost RM68 billion at the time, but could now cost as much as RM110 billion.
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