Malaysia to axe high-speed rail project with Singapore
kuala lumpur — New Malaysian Prime Minister Mahathir Mohamad said on Monday that a planned highspeed railway that would cut travel time between Kuala Lumpur and Singapore to just 90 minutes will be axed because it isn’t beneficial.
Mahathir said the 350-kilometre rail project slated to be completed by 2026 is too costly.
“It is a final decision, but it will take time because we have an agreement with Singapore,” Mahathir said. “It is not beneficial. It is going to cost a huge sum of money. We will make no money at all from this operation.”
The two countries signed an agreement in December 2016 to build the rapid rail line with speeds of over 300 kilometres an hour and dubbed a “game-changer” that will boost connectivity and strengthen economic ties between the neighbours. Currently, it takes at least four hours to travel by car.
Mahathir said Malaysia may have to pay a penalty and will discuss the matter with Singapore, adding that “we will try to manage it at the least cost possible.”
Mahathir’s alliance won a stunning victory in May 9 elections to oust scandal-tainted former prime minister Najib Razak and end his coalition’s 60-year grip on power.
The new government has said it will review large-scale infrastructure projects, including Chinese investment, to cut costs after revealing that national debt and liabilities was over a trillion ringgit ($251 billion), or 80 percent of gross domestic product, taking into account government guarantees and other payments. —