Experts revealed that the much anticipated High Speed Rail (HSR) project, which will connect Singapore and Kuala Lumpur, is expected to be a major boon to the latter’s economy.
Costing approximately US$15 billion (RM59.68 billion), the massive infrastructure development is expected to reduce travel time between the two cities to just 1.5 hours from four hours by car.
According to Centre of Strategic Engagement’s (CENSE) Chief Executive Fui Soong, the effect of the upcoming 350km double-track railway could be similar to the North-South highway that propelled the economic growth of peninsular Malaysia during the 1980s to 1990s.
The improved connectivity resulting from the HSR is expected to entice multinational firms to establish a presence in Kuala Lumpur or any of the five Malaysian areas it will pass through.
More importantly, it is envisioned to boost property prices, attract more tourists and spur foreign direct investment in the country, she said.
“In the last decade, we haven’t seen a mega project. This is something that will help the Malaysian economy, especially since we are seeing a slowdown and the oil prices muted. This will be a fiscal boost.”
At the same time, turning this proposed project into reality will be a monumental achievement for Prime Minister Najib Razak.
Analysts have shared their rosy projections on the upcoming rail line ahead of the signing of the Memorandum of Understanding (MOU) of the HSR project today.
This agreement is the first formal step necessary to start the project, which experts believe would have been impossible without the warm relationship between Malaysia and Singapore.
“It is a sign of how ties really have improved between the two countries as compared to the previous decade when bilateral ties were static. It shows progress,” said KRA Group’s Research Head Keith Leong.
Furthermore, many foreign firms are keen to participate in this massive development. In fact, China Railway, Korail and Japan Rail have demonstrated their HSR technologies to the Malaysian government to snag a piece of the action.
The HSR, which is targeted to be operational by 2026, is expected to be the first of its kind rail line in the ASEAN region. The Malaysian terminal will be sited in Bandar Malaysia, while that for Singapore will be situated in Jurong East.
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
