Thursday 7 January 2021

Axed railway raises Malaysia-Singapore trust deficit

Bilateral cancellation of once ballyhooed high-speed rail project runs deeper than disagreements over costs and Covid


Not long after ringing in the new year, disappointment set in for those on both sides of the Causeway separating Singapore and Malaysia. On January 1, the two countries announced the termination of a multi-billion-dollar high-speed rail (HSR) that would have directly linked the city-state to Malaysia’s capital Kuala Lumpur.

News of the much-anticipated project’s cancellation came as a blow to frequent travelers who shuttle between the two neighboring Southeast Asian states, with leaders from both sides offering conflicting explanations for why the rail link, once touted by Singapore’s Prime Minister Lee Hsien Loong as a “game-changer” for bilateral relations, was axed.

According to a joint statement, the two countries were unable to reach a consensus on continuing the project after Malaysia’s government proposed several changes to reduce costs in light of the economic impact of the Covid-19 pandemic.  Slated for completion by 2031, the rail link would have cost an estimated US$14.9 billion to $19.8 billion.

The 350-kilometer, or 218-mile, HSR would have cut the travel time between the two cities down to about 90 minutes from the more than four hours it now takes by car. According to official estimates, the rail link would have contributed $5 billion in gross domestic product (GDP) to Malaysia and Singapore, as well as create 111,000 jobs by 2060.

Read the full story at Asia Times.

Nile Bowie is a journalist and correspondent with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com