PUTRAJAYA: The High-Speed Rail (HSR) project is expected to be a ‘game changer’ project for both Malaysia and Singapore, said Prime Minister Najib Razak.
Projected to be fully operational in 2026, he said the HSR would have a great multiplier effect for both nations, including generating about 30,000 jobs and creating new economic activities.
“The project will not only spur economic activities in the Klang Valley and Singapore, but will create multiplier effects along the rail alignment. It will create a very exciting future," said Najib at a joint press conference with his Singaporean counterpart Lee Hsien Loong.
To a question, he said, with right business model, the project could still proceed despite the uncertain global economy.
Malaysia and Singapore had inked a memorandum of understanding (MoU) on the High Speed Rail (HSR) project today.
Najib and Lee witnessed the signing of the MoU at the Sri Perdana Complex.
In the MoU, Malaysia was represented by Minister in the Prime Minister's Department Datuk Abdul Rahman Dahlan, and Singapore by its Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan.
Najib said the HSR project would cut travel time between Kuala Lumpur and Singapore to within 90 minutes.
The HSR project, targeted for commercial operations in 2026, will have eight stations namely Bandar Malaysia, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat, Iskandar Puteri and Singapore.
The signing of the project’s bilateral agreement is expected to take place by the end of this year, he said, adding that the tender is expected to be issued next year.
In this respect, Najib said it was premature to reveal the cost of the project before the bidding process.
The prime minister also thanked former Minister in the Prime Minister's Department Tan Sri Abdul Wahid Omar for all his efforts and contributions to the HSR project.
To a question, Lee said the HSR tender process would be carried out objectively with great transparency involving both Malaysia and Singapore.
"The structure has to be right. The execution has to be properly done. When we evaluate the tenders, it has to be objective, fair and transparent
"So when we make the decision, we make sure we get the best value and the best choice for the project" he added.
The Singapore prime minister is on a one-day working visit here.
Earlier, Lee had a private meeting with Najib, discussing bilateral issues of mutual concern.
Malaysia and Singapore have strong ties in various sectors including trade and investment, social, education, defence and security, as well as people-to-people relations.
In 2015, Singapore was Malaysia’s second largest trading partner globally and largest trading partner among member countries of Asean.
Total trade between the two countries stood at RM190.6 billion (US$48.8 billion) last year.