This article first appeared in Forum, The Edge Malaysia Weekly on August 19, 2024 - August 25, 2024

There is much chatter and excitement about the long-awaited Rapid Transit System (RTS) Link connecting JB Sentral with Woodlands North in Singapore. The RTS Link will do much to alleviate the daily congestion at the Causeway, especially for the 300,000 Malaysians who cross daily into Singapore. Jan 1, 2027, is the scheduled operational date for the RTS and as we look forward to the project’s completion, it serves as a reminder of the pressing need for substantial infrastructure investments to invigorate Malaysia’s economy.

As the ringgit starts strengthening and the economic gloom starts to lift, the High Speed Rail (HSR) line connecting Kuala Lumpur to Singapore remains a frequent topic of conversation. Transport Minister Anthony Loke recently announced that following the Request for Information (RFI) exercise which closed in January 2024, a government decision would come before year end. This prolonged timeline raises concerns about the efficiency and urgency of decision-making, particularly when the market desperately needs a boost. The delay is more than just an administrative hiccup; it sends a negative signal to potential investors and stakeholders, dampening market confidence.

A major infrastructure project like the HSR would be the catalyst for economic growth that Malaysia needs. Such projects are not merely about transport; they create jobs, stimulate local businesses and can spur technological advancements. More importantly, they offer long-term benefits that can uplift the economy for generations to come.

During my travels abroad, I’ve witnessed first-hand the transformative power of HSR systems. HSR networks are regarded as indispensable, providing swift, reliable and efficient transport that boosts productivity and enhances quality of life. The widespread adoption of HSR lines across the world has shown that these systems are not just luxuries, but essential infrastructure.

A recent visit to Spain with a Malaysian government delegation further reinforced this perspective. Based in Madrid, I made day trips to Valencia, Zaragoza, Granada and Cordoba by HSR. It was great. The swift, reliable connectivity allowed me to conduct business productively. I would hop onto a train for meetings, speed across the scenic countryside several hundred kilometres away, and return to my hotel in Madrid by nightfall. I loved it. This extensive network, known for its punctuality and broad reach, is a crucial component of Spain’s transport infrastructure, offering a valuable case study for Malaysia. The economic benefits observed in Spain, from tourism to commerce, underscore the potential of similar projects in our region.

Did you know that Spain has the longest HSR network in Europe and the second longest globally, spanning 3,966km? (China holds the top spot as the undisputed HSR leader, with an extensive 45,000km of track). Notably, the Spanish expertise extends beyond its borders; a consortium of 12 Spanish companies constructed the 449.2km Haramain rail line linking Makkah and Madinah, a major project that demonstrates their engineering prowess. The operations, maintenance, and supply of trains are also managed by the Spaniards.

HSR is now the fastest and most economical way to traverse Spain, with over 300 high-speed trains in operation daily. With geopolitical demand requiring investments to be diverted from the main cities of Madrid and Barcelona, new towns connected by HSR become drivers of growth, enhancing accessibility for tourists. Additionally, the Spanish HSR network integrates seamlessly with the broader European HSR system, exemplified by the Barcelona to Paris route, which takes just 6½ hours.

The Spanish HSR network, with its extensive and intricately connected lines, now resembles a beautifully woven tapestry crisscrossing the country. Spain’s embrace of competition is also notable, as it has welcomed foreign operators like French and Italian providers to offer both low-cost and premium services. This openness has resulted in more choices and improved services for customers. The absence of a dominant monopoly on Spain’s HSR lines demonstrates that a competitive environment can coexist with robust infrastructure. Spain’s success with HSR should inspire confidence in the viability of similar projects elsewhere.

Closer to home, Malaysia’s HSR journey has hit numerous roadblocks. In 2016, when then prime ministers Datuk Seri Najib Razak and Lee Hsien Loong signed the HSR Bilateral Agreement between Malaysia and Singapore, they called it a “game changer” for both nations. Connecting the central business districts of Kuala Lumpur and Singapore, the HSR line was supposed to have boosted economic ties, reducing travel time to just 90 minutes.

However, the excitement was short-lived. In 2018, the Pakatan Harapan government, grappling with financial constraints and a significant national debt, sought to renegotiate the project’s terms. The proposed changes included cost reductions and alterations to the project’s structure and financing. Despite extensive negotiations, Malaysia and Singapore could not reach a consensus. On Jan 1, 2021, both governments announced the mutual termination of the HSR project, with Malaysia subsequently compensating Singapore S$102.8 million for costs incurred. What was once heralded as a groundbreaking initiative now seems like a distant dream, left unfulfilled.

Despite past setbacks, it is crucial to reframe the HSR as not just a game changer but an economic imperative or, more succinctly, a critical necessity. The importance of reviving the HSR project is underscored by the rapid advancements of Malaysia’s Asean neighbours in the HSR sector. Indonesia’s Jakarta to Bandung line, which drastically cuts travel time to under an hour and Thailand’s ambitious plans for eight HSR lines, highlight the region’s commitment to modern infrastructure. Even Laos, a relatively underdeveloped nation, has made significant strides with its semi-high-speed rail line connecting Vientiane to Kunming, China, thanks to China’s Belt and Road Initiative.

When I learned about Laos’ rail connection with Kunming, I couldn’t help but smile wistfully and ruefully. It highlighted Malaysia’s missed opportunity, leaving me demoralised to see one of Asean’s least advanced economies pulling ahead. How the mighty Malaysia has fallen. Once a supposed Asean tiger, we are now struggling to reclaim our former glory, languishing while our neighbours surge ahead in infrastructure development.

The Malaysian government has expressed a willingness to revisit the HSR project, stipulating that it must be financed privately. This shift reflects a broader trend, as governments worldwide face tightening budgets and explore alternative funding mechanisms for large-scale infrastructure projects. Critics argue that relying solely on private funding may be impractical, given the traditional reliance on public funds for such ventures. However, evolving economic realities demand innovative approaches and hybrid funding models, combining public and private investments, are becoming increasingly prevalent.

It is vital to assess infrastructure projects not just by their costs but by their potential economic benefits and long-term impacts. Investments in transport can significantly enhance national productivity and contribute to environmental sustainability. Thus, the Malaysian HSR project, if revived and reimagined, could play a pivotal role in revitalising the nation’s economy and re-establishing Malaysia as a leading player in the region.

MyHSR, the Malaysian government agency responsible for advancing the HSR project, has done an exemplary job of evaluating not just the costs but also the benefits of this initiative. It has developed substantial plans to drive targeted investments in pre-identified towns along the alignment, ensuring that economic clusters are created intentionally rather than by chance. Extensive stakeholder engagement at the federal, state and local levels has been undertaken, which is promising as the private consortium chosen for this monumental project will need strong government support to expedite processes and navigate bureaucratic hurdles, especially given the complexities of land acquisition across five states.

Decisive action is now essential. The private sector awaits announcements, particularly as Malaysia urgently needs a major infrastructure project to stimulate domestic economic growth. The conclusion of the RFI process in January 2024 was followed by a troubling silence, which has not bolstered market confidence. Further delays could worsen the already diminished public perception of Malaysia. There is an urgent need for clear direction on whether and when this project will proceed.

PMX, we await your decision with bated breath.

Natasha Zulkifli is the stakeholder director at YTL Construction and founder director of Women in Rail Malaysia

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