KUALA LUMPUR: The proposed Kuala Lumpur-Singapore High-Speed Rail (HSR) project may face significant challenges unless the government provides support, said MCA president Datuk Seri Dr Wee Ka Siong.

He said increasing costs and uncertainty surrounding the project, particularly since the change in administration following the 14th General Election in 2018, have led to concerns about its feasibility.

The former Transport Minister said Malaysia's HSR was initially slated to begin operations by 2026 at a cost of RM70 billion, but recent reports suggests that the price tag surged to RM120 billion. This raised doubts about the possibility of completing the project without government involvement, he said.

"This (RM120 billion price tag) 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.

"The Eurostar London-Paris high speed rail required 20 years before it started generating profit and there are doubts that any private enterprise could bear the costs before it could show profit," Wee said in a Facebook post.

However, despite the challenges he also underscored the economic and social benefits that the HSR project could deliver, while warning that further delays would deprive Malaysia of these advantages.

Wee told the government that the project cannot rely entirely on private sector funding and it should be developed in conjunction with the Bandar Malaysia project, which has a gross development value (GDV) of RM140 billion and was set to become a HSR terminus station.

"The original idea is for the profits of the very viable Bandar Malaysia project to cross-fund the HSR project.

"In fact, if it is done properly, the profits of the Bandar Malaysia project can easily pay for the entire or a substantial cost of the HSR project," Wee added.

He also proposed for the government to take back ownership of the HSR project to develop it together with Bandar Malaysia with a single consortium developing the project in the package.

He added that the government must also involve Singapore government and its government-linked company as a project partner to ensure greater viability of the Bandar Malaysia project and to encourage more Singapore companies to move part of their operations to the site.

https://www.nst.com.my/news/nation/2024/09/1101738/high-speed-rail-project-may-face-challenges-without-government-support