HSR: Singapore unlikely to reimburse Malaysia without key project role - Expert

SHAH ALAM - Singapore will not reimburse Malaysia RM320.27 million for the Kuala Lumpur-Singapore high-speed rail (HSR) unless it is given a significant role in the project, according to an expert's opinion.

The two countries terminated the project in January 2021 after failing to reach an agreement on changes proposed by Malaysia.

Malaysia has paid Singapore S$102.8 million (RM320.27 million) for costs incurred for the development of the HSR project and in relation to the extension of its suspension.

Transport expert Dr Rosli Azad Khan believes that Singapore is unlikely to reimburse Malaysia unless it is given a big say in the project.

He highlighted the costly lesson learned by Malaysia in negotiations and international relations, reflecting the need for more ability among lawmakers at the time.

"That's a lesson learned, I hope. That is why it is important for our voters to elect leaders of integrity and quality who are technically qualified in various fields and put the interests of the nation ahead of their own personal agenda.

"HSR is just one example of the many cases where we have lost to our southern neighbour," he told Sinar Daily.

Rosli further elaborated that we should not forget the former prime minister Datuk Seri Najib Razak’s administration, where Malaysia lost Tanjung Pagar station and the entire length of Keretapi Tanah Melayu Berhad (KTMB) lines in Singapore for a small portion of their true value.

"Why didn't we consider building HSR then while we still had the alignment and the land bank? "In the overall scheme of things, Malaysia should be truly grateful if Singapore were to build HSR at their cost without having Malaysia dig deep into our own coffers.

"Maybe we should offer them to connect this proposed HSR to our Electric Rail Link (ERL), which currently terminates at Terminal 2 at Kuala Lumpur International Airport?" Rosli questioned.

Economist Prof Dr Yeah Kim Leng of Sunway University said that a complete or partial reimbursement of the costs would be a sign of goodwill and could help to strengthen the ties between the two countries.

"With the two countries engaged in talks of establishing a special economic zone in Johor, the resumption of the HSR project would also elevate the economic potential of both countries," Yeah said.

Economist Dr K Kuperan Viswanathan of Universiti Utara Malaysia said that Singapore should not reimburse Malaysia but instead take the lead and finance the project.

"There is no need to return money. In fact, they (Singapore) can use it to take the project forward if they think there are huge benefits for them from the project.

Senior Research Fellow at the Social Wellbeing Research Centre (SWRC) of Universiti Malaya, Dr Zulkiply Omar, provided a different perspective, suggesting that the matter should be discussed at the bargaining table and that the paid amount could be incorporated into a new cost-benefit analysis for the project's revival.

"What was paid is based on the previous agreement. We cannot undo the agreement. We can incorporate the amount into the new cost-benefit analysis for the revival of the project," Zulkiply said.