KL-Singapore HSR plans on hold as Cabinet prioritises existing rail development projects like Gemas-JB line and ECRL, says Amir Hamzah

KUALA LUMPUR, Nov 21 — The Cabinet has yet to discuss reviving the Kuala Lumpur-Singapore High-Speed Rail (HSR) project, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the government’s current priority is completing and further developing projects such as the Gemas-Johor Baru electrified double-track rail project (Gemas-JB EDTP) and the East Coast Rail Link (ECRL).

“The priority must be on what we have today… The focus should be on realising the value from Gemas-JB EDTP and ECRL,” he told The Straits Times in an interview.

He added that a study on the HSR has been conducted, but no discussions have been held at the Cabinet level yet.

“HSR is something that we will always consider, and a study has been conducted. However, at the moment, the Cabinet has not discussed it to that level. We are waiting for the Cabinet’s decision,” Amir Hamzah said.

Transport Minister Anthony Loke had previously stated that negotiations with Singapore on HSR would begin after a Cabinet decision on the feasibility of the project by the end of the year.

However, with just weeks remaining, the Cabinet has yet to make a decision.

The HSR project was terminated in 2021 after both Malaysia and Singapore failed to agree on changes proposed by Malaysia.

Datuk Seri Anwar Ibrahim’s administration, which took office in November 2022, has expressed openness to reviving the 350km project, but only if it is fully funded by the private sector.

In July 2024, Singapore’s Transport Minister Chee Hong Tat stated that the Republic had not received any new proposal from Malaysia but was “willing to discuss it in good faith, starting from a clean slate.”

The RM9.5 billion Gemas-JB EDTP, set for completion in April 2025, will reduce travel time from Johor Baru to Kuala Lumpur to 4½ hours.

Meanwhile, construction of the ECRL is nearly 75 per cent complete, with the first phase connecting Gombak, Selangor, to Kota Baru, Kelantan, expected to reduce travel time by train.

The ECRL, a key component of China’s Belt and Road Initiative, will link the east and west coasts of Peninsular Malaysia by the end of 2026.

Amir Hamzah also mentioned that the government is focusing on more accessible projects, such as public transport, which will improve daily commuting for the public.

The government has allocated RM750 million for the public transport sector under Budget 2025.

This includes the procurement of 895 electric buses for feeder services in the Greater Kuala Lumpur area.

He said the priority of the Transport Ministry in Budget 2025 is to make public transport more efficient.

Amir Hamzah noted that improving first-mile and last-mile services will encourage more people to use buses and trains.

The Ministry of Economy estimates that bus and rail services cover only 55 per cent of the Klang Valley area.

As Malaysia plans to phase out the RON95 petrol subsidy by mid-2025, improving public transport connectivity is expected to ease the impact of higher petrol prices.

Amir Hamzah added that increasing wages in both the private and public sectors is another priority for the country’s economic growth.

Malaysia aims to increase the compensation of employees to 45 per cent of gross domestic product by 2033.

These initiatives are part of Amir Hamzah’s plan to boost the economy by attracting both domestic and foreign direct investment (FDI).

He also mentioned that government-linked investment companies are investing RM150 billion over the next five years.

FDI has been strong, with Malaysia attracting RM160 billion in the first half of 2024, 18 per cent higher than the previous year.

Amir Hamzah believes these reforms will lead to sustainable growth, reducing the reliance on mega projects to drive the economy.