THE government’s RM100 billion valuation of the scrapped high-speed rail (HSR) project linking Malaysia and Singapore is the total sum of the project cost and interest, said Finance Minister Lim Guan Eng.

“It is only RM72 billion if you only look at the project costs. But if you include the interest component, it is higher than RM100 billion,” said Lim.

Lim was responding to allegations by former prime minister and finance minister Najib Razak that the new government’s valuation of the HSR project was inaccurate.

In a Facebook post yesterday, Najib said that the actual estimated breakdown costs for HSR was RM40 billion for the track and rolling stocks, RM20 billion for the systems and RM12 billion for land acquisition, which totalled only RM72 billion.

The former BN and Umno president said the figure of RM100 billion was never quoted and that the “actual figures will only be known after the tenders”.

It was reported in April that the 350km-long HSR project would cost between RM50 and RM60 billion.

The job scope for the project delivery partner was estimated at RM30 to RM35 billion while the value for the MRCB-Garuda job scope was estimated at RM20 to RM23 billion.

The YTL-TH Properties portion was estimated to be around RM10 to RM12 billion.

The HSR project is managed by MyHSR Corp Sdn Bhd and is a joint venture by Malaysian Resources Corporation Bhd, Gamuda Bhd, Syarikat Pembinaan Yeoh Tiong Lay Sdn Bhd and Tabung Haji unit TH Properties. The HSR project was awarded in April.

On Monday, Prime Minister Dr Mahathir Mohamad said the HSR project would be scrapped as the costs involved (RM110 billion) did not justify the benefits.

During the press conference at his ministry today, Lim also said the government would fulfil all of the 100-day promises when the country’s finances were in a better position.

“As much as we would like to implement all the 100-day promises, this government is fiscally responsible and will not follow the previous governments example of fiscal imprudence that would almost certainly have led the nation on a path to bankruptcy,” said Lim.

“The government continues to be committed to implementing our manifesto promises when the financial situation permits,” he added.

Lim, however, did not set any deadline for the fulfilment of the promises.

Among the measures to be implemented are the zero-rating of the goods and services tax and the stabilisation of RON95 and diesel prices at RM2.20 and RM2.18, respectively.

RON97, however, will be maintained at RM2.47 from June 1 to 6 before it is free floated on June 7. The RON97 price will be based on market prices and reviewed on a weekly basis every Thursday.

Items on the manifesto that have been shelved for now are the implementation of the Skim Peduli Sihat for the B40 group, the deferment of PTPTN loans repayment until RM4,000 monthly income threshold and increasing the minimum wage. – May 31, 2018.