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KUALA LUMPUR (Feb 4): The implementation of a Malaysia-only High Speed Rail (HSR) line would have a similar impact on earnings for the Malaysian construction sector as the now-cancelled Kuala Lumpur-Singapore HSR line.
During a question-and-answer session (Q&A) session at Affin Hwang Capital’s Malaysia Economic Outlook and Construction Sector Briefing today, senior associate director Loong Chee Wei opined that close to 90% of the infrastructure work for the original HSR alignment is in Malaysia.
“If they proceed with just the Malaysian portion, the infrastructure spending would be quite large and benefit major contractors in Malaysia. Indications are that it is close to RM30 to RM40 billion on just the construction cost alone,” Loong said.
The cancellation of the HSR line was announced on Jan 1 after both Malaysia and Singapore could not agree on changes proposed by Malaysia.
The estimated cost of construction of the HSR project was last quoted at around RM60 billion, down from its original price tag of RM110 billion.
It is believed that Malaysia will be undertaking the project with a new alignment stretching from Kuala Lumpur to Johor Baru.
The project was first announced in September 2010 by former prime minister Datuk Seri Najib Razak. The infrastructure project was slated for completion in 2026.
The proposed 350km Kuala Lumpur-Singapore HSR project was put on hold after the change of government in Malaysia due to high cost.
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