Malaysia’s king, Sultan Ibrahim Iskandar, is planning to seek Chinese investment for a high-speed rail project linking Malaysia and Singapore, reports Bloomberg. He is currently on a four-day state visit to China, invited by President Xi Jinping.
The project has been revived by Prime Minister Anwar Ibrahim’s government, with the condition that it won’t be funded by taxpayers. Sultan Ibrahim has suggested a private consortium could fund and operate it for 30 years before handing it back to the Malaysian government.
Shortlisted for the project
Three groups have been shortlisted for the project, including one involving YTL Corp., whose representatives are travelling with the king. The two other shortlisted groups include one involving Berjaya Land Bhd., and a Chinese consortium headed by China Railway Construction Corp. The Malaysian government wants the project to be led by a consortium that is at least 51% Malaysian owned.
Sultan Ibrahim has suggested the rail line should be aligned so that the border crossing is through Forest City, a property development in Johor.
It is operated by a joint venture between troubled Chinese developer Country Garden Holdings and a Malaysian firm owned by Sultan Ibrahim, a Johor state government agency and others.
Project history
The high-speed rail line was projected to cost as much as RM100 billion ($23.8 billion) as a government-funded project.
Former prime minister Mahathir Mohamad postponed the project in 2018, about eight years after it was first proposed, citing high costs. It was formally cancelled in 2021, but Anwar’s administration revived it in 2023 on condition that it would not be funded by taxpayers.
Singapore’s Prime Minister Lawrence Wong has said he is willing to hear fresh proposals on the rail link. China has also expressed its willingness to support Malaysia’s infrastructure development.