
This article first appeared in The Edge Malaysia Weekly on September 12, 2022 - September 18, 2022
Once again, the penchant for mega projects has seeped into the system. This time around, it is the revival of an archaic proposal to build an infrastructure link between Telok Gong in Melaka and Dumai in Sumatra, Indonesia.
Melaka state exco member Datuk Seri Ab Rauf Yusoh announced that the state was considering a private sector proposal to build a connection comprising a bridge or tunnel that would span 120km across the Strait of Malacca.
The idea of having a link between Melaka and Sumatra has been around for more than a decade now. But it never took off for various reasons, including financing, the adverse environmental impact and disruption to shipping routes, as the Strait of Malacca is one of the world’s busiest shipping routes.
The cost was estimated at more than RM54 billion 10 years ago. At current prices, it would be multifold.
Being the chairman of the state’s investment, industry, entrepreneur development and cooperatives committee, Ab Rauf’s job is to drive investments and economic developments. However, his performance should not be judged by the number of large-scale projects that he brings to the table — the viability of these projects, economically and financially, is equally important. No one can afford to build what could become a white elephant, including the state and federal governments.
According to Ab Rauf, this is a private sector initiative. This may mean that the project would not need financing from the government. But would it need a form of government guarantee to raise funds?
Ab Rauf, who is seen as a kingmaker at the state level of Umno politics, was quoted by the media as saying that the infrastructure project was part of the “One Belt, One Road” (OBOR) initiative. In that case, it is likely that the Chinese contractors, with the assistance of their government, would participate in the project and possibly offer a financing package as they do for other projects in the region under the OBOR initiative.
But guess who will end up picking up the tab eventually? It is the future generation of Malaysians.
The construction process will cause an adverse impact on the environment. The piling and boring works will do irreversible damage to the ecosystem of the seabed. Furthermore, putting up such an infrastructure across the Strait of Malacca would have repercussions on ships plying the route.
Does the state need the link that badly?
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