The end of HSR ‘not ominous sign for bilateral relations’, say analysts

KUALA LUMPUR (May 31): The move to scrap the Kuala Lumpur-Singapore high-speed rail (HSR) “should not be seen as a move to spite Singapore”, according to analysts who spoke to the daily Today.  

Prime Minister Tun Dr Mahathir Mohamad’s decision to discontinue the HSR created fears that bilateral relations could turn frosty after improving greatly under the administration of Datuk Seri Najib Razak.

The analysts said that the move was made owing to a great need to slash Malaysia’s national debt and should not be seen as an “ominous sign for bilateral relations under Tun Dr Mahathir Mohamad” as prime minister.

“It is not about personal vendetta. He’s too old for all of that. He wants the country to get back on track before handing over power to (Datuk Seri) Anwar (Ibrahim),” said Serina Abdul Rahman of Iseas-Yusof Ishak Institute in Singapore.

“His focus is Malaysia first, not to give problems to Singapore. He’s doing what it takes to restore Malaysia’s financial situation.”

Senior adviser at the Asia Strategy and Leadership Institute in Malaysia, Oh Ei Sun, explained that Malaysia “is entering an economically challenging time”.

With revelations of hidden debts, “a few large-scale public projects would have to be shelved for the moment to tighten up expenditure.

“When the economies of both countries take off again soon, many mutually beneficial projects will one ever again be on the table,” Oh said.

Executive director of Penang Institute Ooi Kee Beng, said that with current realities, Dr Mahathir is “a leader who does not have time for protracted reforms or for restarting new confrontations for their own sake, unlike the old days.

“What we are seeing at the moment are signs of a government trying to get its finances into order and trying to do institutional reform in a hurry.”

Mohamed Nawab Mohamed Osman, coordinator of the Malaysia Programme at Singapore’s S. Rajaratnam School of International Studies (RSIS) said: “The message of the new PH government has been consistent thus far. Whatever policies that will be introduced from now on, they have to benefit Malaysians economically,”  

Speaking to the Singapore-based Channel News Asia, Malaysian Transport Minister Anthony Loke said that the HSR is “subject to review” if the country’s fiscal position improves later.

“Why we cancelled the project is because of affordability. The priority of the government is to pay our debts and the ability to repay our debts, that is our main priority, that’s why some of these projects must be shelved,” Loke said.