China is bidding for a part of a high-speed rail project linking the Malaysian capital with Singapore, which is anticipated to start operations around 2026.
Malaysia and Singapore signed an agreement in July 2016 to construct an ambitious high-speed rail link, touted as the primary in Southeast Asia, which can more closely connect the historically feuding neighbors.
The 350-kilometer bullet train line connecting Singapore’s regional financial center with Malaysia’s capital Kuala Lumpur is anticipated to chop travel times to 90 minutes from the present five-hour or more journey.
Authorities haven’t yet provided cost projections, but analyst estimates range as high as $15 billion, representing a possible reward for foreign rail contractors in addition to other firms expected to profit from additional work on the project.
At a gathering in Malaysia’s administrative capital, Putrajaya, officials from either side signed a memorandum of understanding on the continuation of the project, paving the best way for detailed talks and an invite to international tenders.
You can have breakfast in Kuala Lumpur, lunch in Singapore and return in supper time in Kuala Lumpur
MALAYSIA’S PRIME MINISTER NAJIB RAZAK
Authorities hope to have the trains operational by 2026.
The signing of the agreement was supervised by Malaysian Prime Minister Najib Razak and his Singaporean counterpart Lee Hsien Loong, who jointly proposed the thought in 2013.
“You can have breakfast in Kuala Lumpur, lunch in Singapore and return in supper time in Kuala Lumpur,” Najib said in a joint press statement.
Singapore was expelled from the Malaysian Federation in 1965 over ethnic issues, and relations were marred by occasional quarrels in the next a long time.
However, they continue to be necessary economic partners, and relations under Najib and Lee have warmed significantly in recent times.
Six proposed transit stations can be built between the 2 major cities.
Trains will run at a maximum speed of over 300 kilometers per hour, and customs and immigration clearance will only be possible at the purpose of departure.
The rail proposal has already attracted interest from major Chinese, Japanese and Korean railway firms wanting to showcase their credentials.
However, there was growing speculation that China’s national railway operator China Railway Corp has a lead in what could be the most recent sign of rapidly expanding economic and trade ties between China and Malaysia.
China Railway Group and native partner Iskandar Waterfront Holdings have acquired a 60 percent stake in Bandar Malaysia, a brand new 486-acre industrial and residential development in town center where the proposed high-speed rail terminal can be situated on the Malaysian side.
They bought it in December last yr from a controversial state investment fund 1Development of Malaysia Berhador 1MDB – for 7.41 billion ringgit ($1.82 billion).
Three months later, the identical Chinese company announced plans to speculate $2 billion in a regional center in Bandar, Malaysia.
1MDB, which was founded by Najib, faces allegations that politically connected figures from Malaysia and the Middle East stole billions from it. There are many investigations going down abroad.
Last yr, 1MDB sold its energy assets to China General Nuclear Power Corporation for $2.3 billion.
This saved 1MDB in its fight to stay solvent after incurring nearly $12 billion in debt and failing to fulfill previous debt repayment deadlines.
Additional Kyodo reporting
