Japanese state-owned company, including East Japan Railway Co, have reportedly abandoned their plans to participate in the Kuala Lumpur-Singapore High-Speed Rail (HSR) project, citing concerns about financial risks without support from the Malaysian government.
The company had initially intended to use the Japanese Shinkansen bullet train system for the project. This decision is seen as an opportunity for Chinese firms to strengthen their presence in East Asian infrastructure projects, especially after their involvement in completing a high-speed rail project in Indonesia in 2023, with another project ongoing in Thailand.
According to sources, with the Japanese company’s withdrawal, local firms are now considering partnerships with Chinese and European companies to submit bids for the KL-Singapore HSR project. The Request for Information (RFI) process initiated by MyHSR Corporation Sdn Bhd to allow private sector proposals for the HSR project has extended its deadline to January 15, 2024.
The Malaysian government aims to re-implement the project through new financing mechanisms and implementation models to enhance rail transport infrastructure and stimulate the country’s economy.
The KL-Singapore HSR project, initially estimated at approximately RM110 billion, was terminated on January 1, 2021, as both Malaysia and Singapore failed to reach an agreement on proposed changes before the project agreement’s expiration on December 31, 2020. The termination led to Malaysia agreeing to pay SG$102.8 million to Singapore for the costs incurred during the HSR project development and related extension delays.