Najib (BN-Pekan) said the project would give a new lease of life to the peninsular’s southern economic corridor, such as Iskandar Malaysia, Batu Pahat, Muar, Melaka and Seremban.

“Aside from efforts to rebuild international relations with major economies that were affected after the 14th general election, Malaysia needs to excite the world again.

“Projects like HSR, which would connect two of Asean’s biggest economies, need to be revived according to the original concept and design,” he told the Dewan Rakyat while debating the 12th Malaysia Plan today.

Najib said the project would also create 70,000 job opportunities directly and indirectly, while potentially generating US$1.6 billion in revenue, according to the Institute of Developing Economies in Japan.

However, this would hinge on the rail project directly connecting to Singapore, instead of just running from Kuala Lumpur to Johor Bahru.

The latter, he said, would make the project not viable while costing the nation billions in subsidies.

“Reviving the HSR project according to its original plan can also revive the Bandar Malaysia project, worth RM140 billion in terms of gross development value.”

He suggested that the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) be assigned such development projects, citing their success with the Battersea project in the UK.

“This (Bandar Malaysia) project can also be worked on with Singaporean investors since the HSR would connect with the country, if EPF and PNB are of the view that it would bring an advantage.

“If this happens, I propose that the project be rebranded to Bandar Asean, placing Malaysia as the centre for Asean in efforts to attract the international community’s attention,” he said.

The HSR project was officially cancelled this year, with Malaysia set to compensate Singapore for costs incurred as part of its obligations under the bilateral agreement.

Previously, a source in Putrajaya had told FMT that Malaysia would have to pay compensation of around RM320 million.