KUALA LUMPUR: The weaker ringgit is unlikely to have a contagion effect on the cost to build the 350km High-Speed Rail (HSR) linking Kuala Lumpur and Singapore.
Land Public Transport Commission (SPAD) chief executive officer Mohd Azharuddin Mat Sah told
the Business Times that he was unfazed by the current level of the ringgit.
He said the construction of the HSR link would start only in 2018, and by then, the ringgit would have strengthened against the United States (US) dollar.
International Trade and Industry Ministry former senior director of Asean Economic Cooperation
P. Ravidran reportedly said the
depreciation of the ringgit was a temporary phenomenon.
He expected that it would strengthen to RM4.00 against the US dollar by the first quarter of next year as the country’s fundamentals surrounding the economy remained strong.
The ringgit stood at RM4.43 against the US dollar yesterday.
Malaysia and Singapore will sign the bilateral agreement for the HSR at a leaders’ retreat here on Dec 13, almost six months after inking the memorandum of understanding in July.
Business Times has reported that the cost to build the HSR, including the purchase of rolling stocks, could be between RM60 billion and RM65 billion.
Azharuddin said the project would go ahead despite the market volatility.
“The ringgit goes up and down. We will monitor the ringgit’s performance for the next six months, but we think it will get better.
“Currently, we are going ahead with the project.
“Our view is that, the HSR
project, from a national perspective, is very important for (the nation’s) development.
“It is a project that has been agreed at the highest level.
“So, it has an impact on the people.
“Its benefits are (expected to be) tremendous,” said Azharuddin.
The HSR project will involve the construction of a new line with dedicated tracks (using the standard gauge system), which will allow trains to reach a speed of 320kph, cutting travelling time between both cities to 90 minutes, excluding clearance of Customs, Immigration and Quarantine (CIQ).
The line will run for 350km, with 335km in Malaysia and about 15km in Singapore.
It will have eight stations — Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat, Iskandar Puteri and Singapore.
The terminus for Malaysia will be in Bandar Malaysia, while the terminus in Singapore will be in Jurong East.
Azharuddin said there were two international bids coming up next year for AssetCo and OpCo.
“We will continue to do it as there is a lot of interest coming in.
“The team is preparing the tender documents and it will appoint the joint development partner by early next year.
“If everything goes as planned, the HSR project will be operational by Dec 31, 2026,” he said.