I will not say too much about many other infrastructure projects. For this article, I shall mention just one; High Speed Rail KL – SG (HSR). This is NOT a project where the ticket sales will cover the cost of construction in 12 months or even 24 months or even 36 months! If this is how you look at things, then MRT Singapore would not have been built. Changi International Airport too and so is KLIA, KLIA2 and more. HSR is a catalytic project which will ensure both Malaysia and Singapore continue to grow by leveraging on one another. Just in case, anyone missed, BOTH countries added up together is probably only 40 million plus people.
This total population number is still small even among ASEAN nations, okay? Indonesia is 264 million strong. Thailand is 70 million strong. Need more? Vietnam is close to 100 million. The Philippines is 105 million strong. A very small example how a closer integration will bring benefits? Foreign MNCs could choose to set up a R&D centre in Singapore and have it connected to a strong operations centre in Kuala Lumpur. Both sides benefit. Today, some MNCs may be tempted to be based in SG but worry about the total cost of operations. Some MNCs may be tempted to be based in KL, yet may face some very critical R&D people who is used to be based in SG for many years… More examples but read on and understand why I do worry if some of these catalytic projects are going to be delayed further.
Article in themalaysianreserve.com OCBC Bank economist Wellian Wiranto said big projects such as the Kuala Lumpur (KL)-Singapore high-speed rail (HSR) project which was undecided previously may now be a casualty as the focus may be on pressing administrative issues. He said, “There is also the potential fiscal consideration to think about. Given the slower growth outlook, keeping the deficit at a controlled level as a proportion of GDP would be even harder now than before.”
Fitch Solutions says the country’s infrastructure development plans could once again be impacted, depending on the political developments in the coming days and weeks. It said in a statement, “The current situation, in our opinion, does not bode well for short-term growth prospects of the overall construction industry, as once again, investors, especially those of foreign origin, will likely put a hold to investment plans and wait out for more clarity on the political situation in the country.” Article in themalaysianreserve.com
I do hope whatever these analysts say will not be coming true. Perhaps the new ministers who will be appointed will be able to speed things up then? I know, many say it’s not over yet and that 9th March 2020 may just see another potential change. My opinion stays the same yeah. I said NEW MINISTERS appointed in the near future. So, whoever that may be, please take this up and help Malaysia maintain its competitiveness. Happy following all the news but still remember to give time to your loved ones.
Next suggested article: Useful is yes. Expensive is yes too. MRT Line 3