Need for KL-Singapore bullet-train link questioned

A PROPOSAL for a bullet train service between Kuala Lumpur and Singapore is stirring up controversy, with some questioning its need and viability given other financial challenges facing the country.

Supporters say the high-speed link will be a boon to the business community, as it will cut down the travel time between Kuala Lumpur and Singapore from about five hours now to 90 minutes.

But opinion is divided over the RM8 billion (S$3 billion) link proposed by construction and energy group YTL Corp.

The plan was first floated in 1998 and again in 2006. But for various reasons, YTL's proposal ran into delays while awaiting an official go-ahead.

It was recently the subject of a protest by railway workers, prompting comments from politicians over the past few days.

Rail service provider KTM managing director Mohd Salleh Abdullah has described the project as unnecessary for now, arguing that the state-owned rail company can provide the same service if more infrastructure projects are developed.

Meanwhile, the government has so far kept a neutral stance.

'The government has not made any formal decision yet,' Deputy Prime Minister Najib Razak said yesterday when asked if the bullet train route should end at the Iskandar Malaysia project in Johor, and not in Singapore.

The government, he said, will have to assess the viability of the project and determine its socio-economic benefits before it decides.

But he also noted that the government had other areas requiring its attention and funding, and added that the private sector should drive the project.

'It has got to be a private sector initiative,' he said.

'It cannot be a project that has strong government funding. The risk has got to be carried by the private sector.'

However, some observers countered that the proposed bullet train project would need the government's support for matters such as soft loans, subsidies or compulsory acquisition of land for the track - a likely thorny issue.

'There is an element of risk when you take into account the depreciation and financing cost,' said OSK Research analyst Chris Eng.

However, like many, he noted that there is likely to be strong demand for the bullet train service, especially from business travellers who want an alternative to the long waiting times and clearance procedures required for air travel between Singapore and Kuala Lumpur.

'The project can still be profitable if you are to look into its daily operational basis,' he said.

BERNAMA