Dr M: No decision yet on HSR due to market concerns

PUTRAJAYA: Malaysia has yet to decide on whether to go ahead or abolish the Kuala Lumpur-Singapore High-Speed Rail (HSR) project over concerns pertaining to market reaction.

Prime Minister Tun Dr Mahathir Mohamad told a media conference yesterday that he believed Singapore was familiar with Malaysia’s stand on the matter.

Dr Mahathir said previous announcements on the country’s fiscal situation did not bode well for the market, which he said tended to be grossly spooked by any adverse state of affairs.

He was commenting on a remark by Singapore’s Transport Minister Khaw Boon Wan, who said there had yet to be a reply from the government regarding a diplomatic note sent on June 1 to seek Malaysia’s position on HSR.

“Decisions are not easily made. When we make a decision and announce it, the market reacts negatively. The market, apparently, likes to be told lies about how good everything is (so that) they will give you good marks.

“If we tell them that we have discovered a lot of wrongdoings, they react by running away with (their) money; they will stop investing and all that.

“But in fact, what we are doing is that to ensure this country is run properly, financially.

“That’s what we are doing. They should appreciate it. But their initial reaction is ‘Oh RM1 trillion (in debt), let’s get out of here’. That is their reaction.”

He said as far as Singapore was concerned, Malaysia had yet to provide the republic with any notice.

“So, when we make an announcement, we have people who react negatively. So, that is why we have to be very careful about what we say. They (Singapore) know what we want to do (on efforts to stabilise the country’s economy).”