The completion of the upcoming high-speed rail (HSR) project between Singapore and Kuala Lumpur is likely to be delayed beyond its 2020 deadline, according to Malaysia’s Land Public Transport Commission (SPAD) as reported in the media.
Its Chairman Syed Hamid Albar said the rail project is expected to begin in 2016, but it could take six to seven years to become operational.
So there is a high chance that the project will miss its deadline, even if the Malaysian authorities were to maximise the usage of government land in order to avoid land acquisition disputes.
Another potentially delaying factor is the financing for this massive infrastructure, which is estimated to cost up to RM40 billion (S$15.5 billion), said Malayan Banking Economist Suhaimi Ilias.
“I suspect the government is at the stage where they are mulling over the financing of this project,” he said. “How are they going to do this without affecting the target on fiscal deficit and achieving a balanced budget by 2020?”
Additionally, the cost of construction could increase due to the possible delay, given inflation and rising land prices, Suhaimi added.
However, Singapore’s Ministry of Transport is not aware of the potential delay stated by SPAD Chairman Chairman Syed Hamid Albar.
“As far as we know, we are still working towards project completion by 2020 as agreed by the two Prime Ministers,” said a spokesperson.
“We have not received any indication from Malaysia that it intends to delay the project beyond 2020. Our feasibility studies are on track to be completed next year and bilateral discussions with Malaysia are ongoing.”
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
