The Singapore-Malaysia high-speed rail project is expected to restart, and Chinese enterprises have

Recently, the Ministry of Transport of Malaysia submitted a proposal to the Prime Minister's Office on the restart of the "Singapore-Malaysia High Speed Rail" project, and said that the Malaysia Cabinet will decide whether to restart the project by the end of 2024. If it is decided to reopen, Malaysia will immediately commence business negotiations with Singapore.

Background of the Singapore-Malaysia high-speed rail project

The Singapore-Malaysia high-speed rail project will connect Singapore and Kuala Lumpur, Malaysia, with a total length of about 352 kilometers and a total planned investment of about US$21.4 billion. The high-speed railway is designed to run at a speed of 350 kilometers per hour, with a speed of 300 kilometers per hour, with six stations along the way. Upon completion, the travel time between Singapore and Kuala Lumpur will be reduced from the current 4 hours to less than 90 minutes.

In February 2013, Malaysia and Singapore announced plans for the Singapore-Malaysia High Speed Link. In December 2016, the two sides signed a cooperation agreement, planning to complete the bidding in 2017, start construction in 2018, and open to traffic in 2026. However, after the Malaysia general election in May 2018, the new government suspended the project. In January 2021, Malaysia and Singapore announced the cancellation of the Singapore-Malaysia high-speed rail project and paid S$102.82 million (US$95 million) in compensation.

The reason for the project cancellation

Singapore's transport ministry said Malaysia's proposal to cancel the establishment of the Singapore-Malaysia High Speed Rail Asset Management Company (AssetsCo) led to the termination of the project. The asset management company is an operation and management platform funded by both parties, which is responsible for railway maintenance, train procurement, equipment renewal, operation and asset management. Singapore considers asset management companies to be at the heart of the project and that the abolition of this institution would result in a departure from the original agreement.

Malaysia believes that the original operation model is too expensive and hopes that domestic enterprises will participate more.

Background for the restart project

In March 2023, the leaders of Malaysia and Singapore discussed the resumption of the Singapore-Malaysia high-speed rail project during their visit to China. Transport Minister Loke Siew Hock of Malaysia said that Malaysia is open to proposals from the private sector and has started a global call for conceptual proposals for the Singapore-Malaysia high-speed rail.

In June 2024, Singapore Prime Minister Lawrence Wong visited Malaysia and expressed support for the resumption of the Singapore-Malaysia high-speed rail project.

Shortlisted consortium and financing proposals

The Malaysia government shortlisted three consortiums from seven consortiums of 31 companies. According to local media reports, the consortiums are led by Yang Zhongli Group, Chenggong Group and China Railway Construction respectively. The consortium led by CRCC has extensive experience in the construction and operation of high-speed railways, and is actively involved in international infrastructure projects under the Belt and Road Initiative.

The Government of Malaysia was not inclined in principle to provide guarantees in order to avoid increasing the country's debt burden and called on the private sector to participate in financing and play a leading role. Malaysia may learn from the "Javan high-speed railway" model to achieve "zero financial burden + no sovereign guarantee" by the government, with private enterprises leading the construction and operation.

Participation of Chinese companies

CRCC has excelled in international high-speed rail projects and has accumulated extensive experience in high-speed rail construction projects both domestically and internationally. For example, the Jakarta-Bandung high-speed railway project in Indonesia, which China Railway Construction participated in the construction, has realized the Indonesian government's model of "zero financial burden + no sovereign guarantee", providing a successful case for the Singapore-Malaysia high-speed railway. In addition, CRCC has advantages in project financing, technology transfer, localized production and talent training, which will contribute to the smooth implementation of the Singapore-Malaysia high-speed rail project.

The resumption of the Singapore-Malaysia high-speed rail project will significantly improve the transportation convenience between Singapore and Kuala Lumpur, which is of great significance to regional economic development. The cooperation between Malaysia and Singapore, as well as the active participation of the private sector, will be key to the success of the project. The participation of Chinese enterprises, especially China Railway Construction, has provided technical and experience support for the project, which is expected to make an important contribution to the smooth implementation of the Singapore-Malaysia high-speed rail project. In the future, with the advancement of the project, the economic ties in Southeast Asia will become closer and the process of regional integration will be further accelerated.

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