FORMER transport minister Datuk Seri Dr Wee Ka Siong has called for the government to take back ownership of the Kuala Lumpur-Singapore High-Speed Rail (HSR) and Bandar Malaysia projects.
In a Facebook post on Thursday (Sept 5), Wee said a single consortium should be allowed to develop both the HSR and Bandar Malaysia project as a package and not in isolation.
“The original plan was for the HSR to start operations by 2026 with a construction cost of RM70 bil, which is a mere two years from now,” he stated.
“Since the change of government in the 14th general election (GE14) in 2018, the project has encountered numerous delays, postponements, suspension, cancellation, and revival.”
According to Wee, who is also MCA president, until today there is still uncertainty whether the project can proceed, with recent reports indicating that the price has now increased to RM120 bil.
“This has put the feasibility of the project in doubt especially if the Madani government wishes for this project to be entirely funded by the private sector,” he remarked.
Citing the Eurostar London-Paris HSR project, Wee noted that it required 20 years before the project started generating profits and there were doubts that any private enterprises is able to bear the cost of its construction and gestation period.
“After numerous studies done, no one can deny the economic and social benefits of the HSR project. The longer we wait for the project to start, the longer the nation is deprived of these economic and social benefits,” he said.
“Therefore, the government is urged to consider the fact that this project cannot solely depend on the private sector without any government assistance, and that the HSR project cannot be looked at in isolation.
“It must be viewed together with the RM140 bil GDV Bandar Malaysia project which is also the terminus station for the HSR.”
Wee said the original idea is for profits of the Bandar Malaysia project to cross-fund the HSR project and if done properly, the profits of the Bandar Malaysia project can easily pay for the entire or a substantial cost of the HSR project.
“Therefore, the government should consider taking back ownership to develop the HST project and allowing a single consortium to develop the HSR and Bandar Malaysia project as a whole,” he suggested.
“The government should also consider involving the Singapore government and its GLCs as a project partner as per the original plan.
“This will also ensure greater viability for the Bandar Malaysia project and encourage more Singapore companies to move part of their operations to the site.” – Sept 5, 2024
Main image: Bernama
