Any attempt to have the HSR up to Johor would also be a waste of funds and would serve no purpose. In fact, it could be counter-productive, they say.
Speaking to FMT, veteran consultant Goh Bok Yen and Malaysian International Chamber of Commerce and Industry (MICCI) executive director Shaun Cheah said a rail project which does not directly connect Singapore to Malaysia would be “pointless”.
Yesterday, the governments of Singapore and Malaysia confirmed that the HSR project is off after the bilateral agreement struck between the two countries in 2016 lapsed.
Malaysia had proposed amendments to the plan after changes in government, both in 2018 and 2020, but could not come to an agreement with Singapore.
It has been reported that a KL-Johor Bahru rail project could replace the KL-Singapore HSR but Goh says the impact and viability of such a project were questionable.
“The impact of connecting two economic hubs in the region is obvious. Singapore gains a hinterland while Malaysia gains an international gateway.
“Without this, all you will have (with a KL-JB rail line) is just another domestic line which not only duplicates the Keretapi Tanah Melayu Berhad (KTMB) line between the two states but also competes with existing highway links and air transport.”
Goh said it would be more prudent to skip a new rail line altogether and use the money, estimated to be in the billions, to improve KTMB’s capacity, widen roads, and put in place better public transport facilities.
He also shared former prime minister Najib Razak’s concerns that if the HSR does not go directly to Singapore, it will affect its sustainability as the pool of passengers will not come from a new source like Singapore but from existing domestic travellers.
“One of the biggest plus points of the KL-Singapore HSR was the single Customs and Immigration clearance either at KL or Singapore, depending on where you depart. This saves a lot of time, unlike travelling on an airplane.”
Cheah said the rationale for the HSR was a connection to Singapore. Without it, there was no rationale for another rail project.
“The KL-Singapore air route is among the busiest in the world and the reason for that is because Malaysia is an extension for many businesses headquartered in Singapore.
“A lot of foreign direct investment comes through Singapore and many regional offices are based there because of the ease of doing business, political stability, and clarity of policies.”
However, costs were lower In Malaysia, so many companies, although anchored in Singapore, would expand operationally here.
“With the connectivity, it becomes like a daily commute. Without that seamless connectivity, people will face the same delays they face when travelling via air or land,” he said, adding that he hoped Putrajaya would go back to the original HSR plan.
Economist Carmelo Ferlito said Malaysia would lose out on economic opportunities, and that an HSR between KL and Singapore should even be expanded in time, to connect the two countries to Thailand.
“The future of transportation in Malaysia is rail. It is not efficient or sustainable to travel within via airplanes and roads,” said Ferlito who heads the Center for Market Education.
“What we need is an integrated rail network, not just for passenger traffic but cargo as well.”