The government’s decision to terminate the Kuala Lumpur-Singapore High-Speed Rail (HSR) project is the right move as the country is currently facing health and economic crises.
Putra Business School associate professor Dr Ahmed Razman Abdul Latiff said this was although the government was facing the possibility of paying RM300 million in compensation to Singapore.
He said the cost of committing to the project was much higher, ranging from RM70 billion to RM100 billion.
“Given that the country is facing both health and economic crises at the moment, the financial commitment required to continue with the HSR project might not be the top priority for the government.”
Juwai IQI chief economist Shan Saeed said amicably calling off the project at this moment signalled that both countries understood the limitations and global fragilities in the external landscape, as most countries would be focused on maintaining macroeconomic stability this year.
“Markets won’t be affected by this decision. In my opinion, the government should focus on strengthening the domestic economy and demand to keep the growth trajectory moving in a structured manner.
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