TTF: Malaysia is dropping plans to build a high-speed rail link between Kuala Lumpur and Singapore.
Dr Mahathir Mohamad told the Financial Times today that the link was costly and would not earn Malaysia a single sen.
Weather true or not, it looks like the Government of Malaysia is all about dollars and cents and not about the welfare of the people.
He even shut down his bakery chain, The Loaf, on a 24 hours notice and left all his employees – some of whom were with him for 12 long years – jobless.
To this day, we have never been given a detailed breakdown of why the Federal Debt is RM1 trillion despite official figures showing the debt to be RM686 billion.
KUALA LUMPUR: Malaysia is dropping a plan for a high-speed rail link between its capital, Kuala Lumpur, and Singapore, and will talk with its southern neighbour about the agreement to build it, Malaysia’s prime minister said in an interview published on Monday.
Tun Dr Mahathir Mohamad, the 92-year-old who triumphed over scandal-plagued Datuk Seri Najib Razak in a general election this month, has made it a priority to cut the national debt and pledged to review major projects agreed by the previous government.
“We need to do away with some of the unnecessary projects, for example the high-speed rail, which is going to cost us 110 billion ringgit (US$28 billion) and will not earn us a single cent. That will be dropped,” Dr Mahathir told the Financial Times.
The project, valued by analysts at about US$17 billion, is out for tender and is scheduled to be completed by 2026.
Singapore’s government did not immediately have any comment on Dr Mahathir’s reported vow to scrap the project.
Dr Mahathir had previously said there were high financial penalties for pulling out of the project and Malaysia would try to find out how it could reduce those costs.
“We have an agreement with Singapore,” Dr Mahathir said. We have to talk with Singapore about dropping that project.”
Dr Mahathir has also said his government was haggling with Chinese partners over the terms of a US$14 billion rail deal aimed at connecting the South China Sea at the Thai border in the east with the strategic shipping routes of the Straits of Malacca in the west.
He estimates that Malaysia could cut almost a fifth of its US$250 billion national debt and liabilities by scrapping such big projects.
Source: NST Online