Rahman Dahlan slams 'short-sighted' Pakatan for axing HSR

Updated 8 years ago · Published on 29 May 2018 5:48PM · 6 Comments

Former minister Abdul Rahman Dahlan says ditching the Kuala Lumpur-Singapore High-Speed Rail project will see Malaysia losing RM209 billion in gross national income. – The Malaysian Insight file pic, May 29, 2018.

SCRAPPING the Kuala Lumpur-Singapore High-Speed Rail project is a big mistake by a short-sighted government, said Abdul Rahman Dahlan.

The former minister in the Prime Minister’s Department said the project has the potential to stimulate economic development along rail corridors and urban development around its stations, better known as “transit-oriented development”.

“The result of the (KL-Singapore) HSR would be no less than the economic multipliers of the Taiwan HSR, between Taipei and Kaoshiung, and the Tokaido Shinkansen, between Tokyo and Osaka,” he said in a statement today.

He said as such, Prime Minister Dr Mahathir Mohamad’s remarks that the HSR would not make money from its operations, as potential returns from land value capture would only serve to pay off the cost of the project, were “too simplistic”.

The Umno communications unit member questioned the government over how it had tabulated the project’s cost.

“The Pakatan Harapan government says the HSR’s RM110 billion price tag is the main reason the project must be cancelled. How did they arrive at this figure?

“This differs greatly from the range of RM50 billion to RM70 billion that the governments of Singapore and Malaysia had budgeted earlier this year.”

He said ditching the project will see Malaysia losing RM209 billion in gross national income, and the estimated 70,000 jobs it would create will not materialise.

“A study by research body Institute of Developing Economies, Japan External Trade Organisation said after the HSR is in operation, it would deliver US$1 billion (RM4 billion) in economic gain to Malaysia every year.”

Rahman added that the value of 1Malaysia Development Bhd’s Bandar Malaysia project, which was to be the rail link’s terminus, will substantially decrease, diminishing 1MDB’s ability to repay its debts.

“Did the PH government take into account the net economic benefits and spillover effects, beyond the cost of the HSR project, before arriving at the hasty decision to cancel it?

“The government should not be short-sighted in making an important decision such as this. It is obvious that the spillover benefits are huge.”

Announcing the decision to shelve the project yesterday, Dr Mahathir said Malaysia will have to pay RM500 million in compensation to Singapore.

The 350km line, with trains moving at a top speed of more than 300kph, was targeted to begin operations in 2026. It would have shortened the land journey between Kuala Lumpur and Singapore to 90 minutes, from the current five hours. – May 29, 2018.

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Comments

  • How did you work out those figures? You seem to have avoided the question on the interest payments to service the loan that has to be taken to proceed with the HSR as well as the repayment of loan itself. It is like a person who can only afford to stay in a terrace house but has grand plans to buy a luxury bungalow. This is probably one of the grandiose projects intended to enrich certain parties in BN and the country can surely do without it at this moment.

    Posted 8 years ago by Mun Hoong Koh · Reply

  • I doubt many people will listen to a loser - especially a loser that has no credibility & tainted with corruption. We have a similar quek psychopath at axa - whenever he opens his loud filthy mouth - garbage pours out. Hardly anyone pay any attention to his bullshits. Read more at changenow083.blogspot.com - and discover the reason axa is wallowing in faeces at the bottom of the Jamban

    Posted 8 years ago by Chris Ng · Reply

  • Perhaps speedily taking steps to restore English to its original high-ranking proficiency level will be a better idea than HSR right now? Then when the Industrial Revolution No. 4 (IR4) is thrust upon us in future with the resulting loss of jobs to robots and AI (artificial intelligence), Malaysians would have a good command of English to be able to easily work overseas and attract good salaries..

    Posted 8 years ago by MELVILLE JAYATHISSA · Reply

  • Dahlan please explain in details about the economic effect and spill over??????????More like good returns and positive spill over to your ex boss and his lackeys. Maybe you do get some spill over crumbs. Utterly rubbish your statement and waht more you have no standing to talk or make speeches when the UmnoBN adminstration are viewed with hatred, anger and totally disgust by the Rakayat. You all are history!!!!!!!!!!!!!!!. Go and learn how to set up new ideologies as a pro active contributing opposition and maybe there is some glimer of hope for a return but it sure will be very long as per our crystal ball

    Posted 8 years ago by Lee Lee · Reply

  • The cost has been inflated. Malaysia got to pay more for this project and Singapore gets maximum benefit. With the HSR commuters would ignore KLIA and make Changi Airport their point of departure. More business for Singapore. If at all it has to be built come up with an open tender and we shall see the cost reduced to perhaps RM 30billion. Singapore has this kiasu mentality. They refuse to come up with a new Causeway. The present

    Posted 8 years ago by Ken destino · Reply

  • old bridge linking Spore and Johore is congested. They refuse to have a bridge that allows ships to sail below it for fear that the ports in Southern Johore would compete with their ports. And now they want the HSR .... a real kiasu mentality they have. If it benefits them, yes. If it does not benefit them, no. This is Singapore.

    Posted 8 years ago by Ken destino · Reply