#Newsflash: Former lead minister for HSR project says Mahathir’s decision to scrap it a ‘big mistake’

Former lead minister for the HSR project Abdul Rahman Dahlan (far right), seen here at the inking of the HSR Memorandum of Understanding in 2016, has hit out at the current government's plans to scrap the project.

SINGAPORE — A Malaysian politician from the former ruling Barisan Nasional coalition lamented on Tuesday (May 29) the decision to pull the plug on the Kuala Lumpur-Singapore High Speed Rail (HSR) project, calling it a "big mistake" on the part of the current administration.

Writing on Facebook, Datuk Seri Abdul Rahman Dahlan, who was the lead minister for the project, said the HSR — which he called a "strategic project" — would help to "improve (the) economies and elevate the quality of life of both (Singapore and Malaysia)".

On Monday, Malaysian prime minister Tun Dr Mahathir Mohamad announced the decision to cancel the HSR project as part of drastic cuts to government spending and investment that are required for the country to "avoid being declared bankrupt".

"We need to do away with some of the unnecessary projects, for example the high-speed rail, which is going to cost us RM110 billion and will not earn us a single cent. That will be dropped," Dr Mahathir said.

He later told a press conference that Malaysia's decision to scrap the HSR project was "final".

On Tuesday, Mr Rahman took issue with the "simplistic" manner in which Dr Mahathir described matters.

"(It) is too simplistic for the Prime Minister Tun Dr Mahathir to say that the project won't be beneficial because it's going to cost our country a huge sum of money and it will make no money at all from the operation, as any potential returns from land value capture would pay for the railway project in the long run," he wrote.

Mr Rahman also said that the abandonment of the HSR project would mean that the value of state investment fund 1Malaysia Development Berhad (1MDB)'s project at the terminus station would be decreased.

This, in turn, would "diminish the ability of 1MDB to repay its debt", he added.

Mr Rahman, who inked the HSR agreement with Singapore, also raised questions about the RM110 billion figure Dr Mahathir mentioned on Monday.

"The current … government now says the RM110 billion cost of the HSR is the main reason why this project must be cancelled. How did the figure of RM110 billion cost of the HSR come about?

"This differs greatly from the range of RM50 billion to RM70 billion cost that the governments of Singapore and Malaysia had budgeted earlier this year."

Mr Rahman then chastised the Mahathir administration for being "short-sighted" in making the decision.

"It is obviously clear that the spill-over benefits are so huge that it will be a wasted opportunity if we don't proceed with the project now," he wrote.

"Should this project be re-started in future years, the cost would only increase and the debt burden will increase manifold which is totally against (the) government's plan to reduce the national debt."

Hours after his post, Dr Mahathir called on Mr Rahman to show evidence that over RM200 billion will possibly be lost if the HSR project is called off.

“Show the proof. When we said they had lost RM1 trillion, we have the papers, proof, documents, [to show] that we lost [the money],” said Dr Mahathir, referring to the total liabilities of the previous government.

“Don’t just simply talk; ask him to bring out the proof.”



News and photo from Today Online