Malaysia will lose an estimated RM209 billion in gross national income (GNI) contribution if the Kuala Lumpur-Singapore High Speed Rail (KL-Singapore HSR) is called off, MyHSR Corporation said.

Chief executive officer Mohd Nur Ismal Mohamed Kamal said the GNI contribution is based on the spillover effect in the rail and supporting industries as a result of developing HSR capabilities in 2035.

“The government of the day has the full right to decide on it. But, benefits from this project will stem from many different areas, including the planning, construction, operation and maintenance.

“The spillover benefit is just so huge that it will be a wasted opportunity if we don't proceed,” Mohd Nur Ismal told reporters in a briefing on the update for the project in Kuala Lumpur today.

MyHSR Corp, wholly-owned by the Minister of Finance Incorporated, is the project delivery vehicle for the KL-Singapore HSR project.

He said among the project benefits is the creation of seven megacities along the location of the HSR stations, namely Johor Bahru, Batu Pahat, Muar, Malacca, Seremban, Sepang and Bandar Malaysia, and business opportunities for local contractors from its construction.

“The more than 60 civil work packages will result in over 5,000 sub-contract packages being opened to local firms, which will stimulate the growth of local industries. More than 40 percent in value of the civil work packages will be allocated to bumiputera companies,” he added.

Mohd Nur Ismal (photo) said MyHSR Corp supported the push for localisation and had at the start of the procurement process emphasised the importance of local players in the project.

“Opportunities for Malaysian contractors are plenty in these civil work packages ranging from advisory, engineering and design, certification, testing and commissioning.

“Keeping the job pipeline local will, in turn, contribute directly to the Malaysian economy,” he said.

He said the HSR is also expected to generate more than 70,000 jobs to deliver the civil works packages and help to build up human capital from among young graduates and vocational students.

“They get to be up-to-date on the latest skills in the HSR development, which is the pinnacle of railway engineering,” he added.

Mohd Nur Ismal said apart from losing the economic benefits, Malaysia would have to bear the abortive cost of cancelling the project, as well as compensation for abortive costs in Singapore.

He declined to disclose the value.

Former prime minister Dr Mahathir Mohamad has previously stated his opposition to the HSR project, citing financial constraints as a reason.

Also, Mahathir, who is Pakatan Harapan coalition chairperson, said the HSR contract signed between Malaysia and Singapore may not be a done deal if the opposition comes to power.

Expected to be completed in December 2026, the HSR would reduce travel time between Southeast Asia’s two most vibrant cities, Kuala Lumpur and Singapore, to 90 minutes and catalyse socio-economic development as well as the growth of the cities along its route.

- Bernama