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Transport Minister Loke Siew Fook said he hoped to make a decision on the project by the end of the fourth quarter.
(FMT) – Malaysia will decide in the coming months whether to proceed with construction of a multi-billion dollar high-speed rail link between Kuala Lumpur and Singapore as the government led by Prime Minister Anwar Ibrahim weighs proposals from a dwindling number of private consortiums.
Transport Minister Loke Siew Fook said in an interview on Wednesday that he hoped Malaysia’s cabinet would make a decision on the project’s feasibility by the end of the fourth quarter.
“Once we make the policy decision to go ahead with the high-speed rail, we will start negotiations with Singapore,” Loke said.
Loke said Anwar’s government had shortlisted three out of seven consortiums that submitted proposals after issuing a so-called “request for information” late last year, but he declined to name the companies involved.
He said the government’s policy was to hand over strategic assets such as high-speed rail to groups that were at least 51% owned by Malaysian companies.
The Edge reported in March, citing unnamed sources, that a separate proposal led by YTL Group, Berjaya Land Ltd and China Railway Construction Corporation Ltd had been shortlisted for the project.
YTL Group and Berjaya Group are controlled by tycoons Yeoh Soo Bin and Vincent Tan respectively.
Sudan’s approval
Plans for a 350km rail line between Kuala Lumpur and Singapore were first approved in 2013 but were abandoned seven years later due to disagreements over cost and other issues.
The Johor sultan said in December he would push for the project’s revival, suggesting it pass through Forest City, a troubled mega-development in the Straits of Singapore in which he owns a stake. Sultan Ibrahim, who became king in January under Malaysia’s rotational monarchy, will serve as king for the next five years.
The railway, which aims to cut travel time between the two cities from more than four hours by car to 90 minutes, is a government-funded project expected to cost 100 billion ringgit ($21.4 billion).
Loke said the cost could be lower, depending on the option the government chooses. So far, officials have not ruled out aid for the project, but Loke said the government is not keen on providing a guarantee for the project because it would increase Malaysia’s debt burden.
“We definitely don’t want to increase our liability,” he said.
“There are a lot of other factors that could motivate the private sector.”
The project could eventually become a key part of a series of rail lines backed by Beijing, connecting China with much of the region.
Loke said Malaysia is on track to complete a Chinese-built railway line connecting the east and west coasts of Peninsular Malaysia by the end of 2026 and start operating it the following year.
He also said he had proposed to Thailand to link the project to its rail network. He said the plan ultimately aims to connect more of Southeast Asia to China by rail.
“I believe we can continue to push and continue to convince our counterparts in Thailand and Laos to get involved in this,” he said.
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