Roundup: Malaysia, Singapore ink MoU on iconic high speed rail

Malaysia and Singapore signed a memorandum of understanding (MoU) Tuesday on the long anticipated high speed rail linking the two countries, a major step to boost connectivity between the neighbors.

The signing was witnessed by Malaysian Prime Minister Najib Razak and his Singaporean counterpart Lee Hsien Loong, a significant milestone since the project was first announced in 2013.

FIRMEST COMMITMENT

"The signing of MoU signifies Malaysia and Singapore's firmest commitment to this iconic project," said Najib during a joint press conference with Lee after witnessing the signing of the MoU.

The MoU captures key points of agreement between the two countries on the project such as the details on technical parameter, commercial model as well as custom, immigration, quarantine (CIQ) clearance, safety and security matters, regulatory framework and project management, he said.

The two governments are committed to sign a bilateral agreement that will contain details related to the project by the end to this year, while targeting the commencing of operations by 2026, he added.

The proposed high speed rail, with the top operation speed of over 300 kilometers per hours, is expected to cut the traveling time between the Malaysian capital of Kuala Lumpur and the city state to 90 minutes.

BRINGING BENEFIT

The high speed rail is expected to enhance people-to-people ties and improve business linkages between the two countries, and both prime ministers said it would change the lifestyles of the people.

"One can have breakfast in Kuala Lumpur, lunch in Singapore, and back in time for dinner in Kuala Lumpur," said Najib, adding that cities along the line will be benefited.

For his part, Lee said the project would boost economic growth for the two countries by bringing in more opportunities.

According to a joint statement issued by the transport authorities of the two countries, eight stations will be built along the line, including the two termini in Kuala Lumpur and Singapore, respectively, as well as six intermediate stations in Malaysia.

Goh Bok Yen, a well-known transportation planning consultant in Malaysia, said he was not optimistic that the two countries could iron out the details for the law-binding agreement, citing past bilateral plans that failed to realize.

Lee admitted that one or two issues and some details still need to be worked out, but stressed that "the main picture is there."

He urged the two countries to work closely together on the many joint decisions and many difficult implementation issues that may arise.

COMPETITION FOR TENDER

Najib said a joint project team would be set up by Malaysia's high speed rail corporation and Land Transport Authority of Singapore to implement and address the integration project. Following the signing of bilateral agreement, it will work on the preparation of a tender for the project, which is expected to be issue next year.

Local media estimated that project would cost some 15 billion U.S. dollars, a figure Najib denied to confirm, citing factors like the technology progress in coming years.

Railway companies from China, Japan and Europe have long expressed interests in this major infrastructure project. Singaporean and Malaysian transport authorities said the joint project team will call for an international tender in August to appoint a Joint Development Partner to provide technical support.

Sheng Guangzu, general manager of the China Railway Corp., said during a visit to Malaysia and Singapore in May that China has unique advantages in technology and safety as its companies eye participation in the high speed rail linking the two countries. Enditem