THE cabinet has yet to discuss the Kuala Lumpur-Singapore high-speed rail (HSR) project despite the prime minister’s announcement yesterday of its cancellation, said the transport minister.

Anthony Loke said the cabinet will discuss the matter tomorrow.

“It will be brought up at the meeting, so let’s wait for the decision. As far as we know, it was not discussed yet,” he said after launching Wesak Day at the Brickfields Buddhist Maha Vihara temple.

When asked if a final decision has been reached on the HSR, Loke declined to comment.

“Have to ask the prime minister (Dr Mahathir Mohamad) on that.”

About 5,000 devotees gathered to celebrate Wesak Day at the temple which included a chariot procession starting at 7.30pm.

Also present was Finance Minister Lim Guan Eng who followed the procession from the temple to Brickfields Little India. 

Earlier today, former minister in the Prime Minister’s Department Abdul Rahman Dahlan said the Pakatan Harapan government is making a big mistake in axing the HSR.

He 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, Dr Mahathir’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”.

He said ditching the project will see Malaysia lose RM209 billion in gross national income, and an estimated 70,000 jobs.

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.