HSR – KL – SG continuous news update. Okay, is it now a YES or was it still a NO, it will not proceed. It was a NO (cost is just too high, benefits may not meet those investments), then followed by an alternative; probably a slower connection at much lower cost. Here’s that article: 40 minutes extra, RM50 billion lower. Alternative HSR plan.Viable? Then, it was announced in the media that Singapore has yet to be informed formally about this cancellation. Earlier article here: HSR’s RM864 million expenditure by Singaporean side by Dec 2018 Today, we have this title greeting us in an article in TheEdgeMarkets: HSR could be revived if cost is cut: Malaysia finance minister Lim Guan Eng. kopiandproperty.com supports the HSR KL – SG and has also provided our personal views here as well: Focus on the new demand, not just the existing. That’s the key to HSR’s attractiveness. I know, it’s best to only proceed if the country could afford it. This is why the IF here is very important. What if the country really could afford it?
As per TheEdgeMarkets article, our Finance Minister Lim Guan Eng said, “The project by itself makes some sense, but not at the exorbitant cost.” He shared that ever since news of the cancellation was out there has been people who proposed that the project be continued but at half the cost. He added, “We don’t know whether that’s serious… (but) that means the whole thing was way overpriced and that raises more questions.” When asked if there could be an alternative plan, he replied replied that discussions will be held in Singapore and it will be led by Economic Affairs Minister Azmin Ali and also Transport Minister Anthony Loke. This was what Singapore’s Foreign Minister told the Singapore parliament earlier. He said, “Should Malaysia cause the HSR project to be terminated, we will deal with the question of compensation from Malaysia for costs incurred in accordance with the bilateral agreement and international law.”
There you have it. Another latest piece of news and this one has sort of clarified that cancellation is not a final decision yet. Many would hinge on whether the overall cost of construction could be reduced. Perhaps this should be the main pointto be discussed instead of whether it should or should not be cancelled. We can conclude that the HSR KL – SG is definitely beneficial to both sides. Anyway, if the costs are cut, it is also beneficial to both sides, not just Malaysia. As for the viability of the alternative plans, we should be very objective because cutting costs should only be about getting similar quality at lower prices. Oh yeah, I remember much earlier on that the Chinese (China) has often said that the construction of such a high speed rail line would take no more than 5 years. In other words, who knows, the HSR could even be completed earlier? (and cheaper… perhaps). Happy following.
written on 11 July 2018
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