Mahathir to drop high-speed rail project with Singapore: FT

A joint statement by MyHSR Corp Sdn Bhd and SG HSR Pte Ltd (SG HSR) said the extension would not affect the Dec 31, 2026 date for the HSR Express Service to begin service.

KUALA LUMPUR: Malaysia plans to drop its plans for a high-speed rail link between its capital, Kuala Lumpur, and Singapore, and will talk with its southern neighbour about the pact to build it, Prime Minister Tun Dr Mahathir Mohamad said in an interview published on Monday.

"We need to do away with some of the unnecessary projects, for example the high-speed rail, which is going to cost us RM110bn ($28bn) and will not earn us a single cent. That will be dropped," Mahathir told the Financial Times.

"We have an agreement with Singapore. We have to talk with Singapore about dropping that project," he said, according to Reuters.

When Pakatan Harapan swept to power in the 14th General Elections on May 9, it announced that it would review mega projects initiated by the previous administration to save the country billions of ringgit.

These may include the HSR, Bandar Malaysia, Tun Razak Exchange (TRX) and the Pan-Borneo Highway.

The HSR is a 350-km railway scheme linking Kuala Lumpur and Singapore and is expected to start operations from 2026.

Interestingly, two days before the Dewan Rakyat was dissolved in April to pave way for the 14th general election, MyHSR Corp Sdn Bhd – the firm responsible for the development and implementation of the project – announced the appointment  of two project delivery partners (PDPs) for the project to oversee the civil works worth a combined RM30bil-RM40bil.

The contracts were secured by the joint ventures (JVs) of Malaysian Resources Corp Bhd and Gamuda Bhd (MRCB-Gamuda JV) and YTL Corp’s Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd and TH Properties Sdn Bhd (YTL-THP JV), a subsidiary of  pilgrim fund Lembaga Tabung Haji.