No more Bullet Train

Excerpt taken from TheMalaysianInsider.com

KUALA LUMPUR, April 22 — Bullet train – dead on the tracks.

The Malaysian government has pulled the brakes on YTL’s RM10 billion bullet train project to Singapore. The Economic Planning Unit has decided that the project is not viable nor is it critical for the country, The Malaysian Insider has learnt.

This decision ends the uncertainty surrounding Tan Sri Francis Yeoh’s ambitious plan of reducing travel time between Kuala Lumpur and Singapore to 90 minutes. Since the tycoon floated the idea of a bullet train in 2006, there has been a sharp division of views over the project.

Its supporters argue that besides reducing the time of travel, a bullet train will also create a convergence of properties and level out the price of properties between the two countries.

Critics say that Malaysia does not need another expensive infrastructure project and note that it will impact on the KLIA’s position as a hub, with many Malaysians travelling to Changi to take advantage of better connectivity.

Within government circles, there was a concern that the project will not be financially viable and government funds will be needed to subsidise the project or even bail out the project if it failed. Initially, there was speculation that the government may have to guarantee a subsidy of RM1 billion a year for a period of time.

There was also the fear from the Johor government that a bullet train from KL to Singapore could have an adverse impact on Iskandar Malaysia...

Read the full aritcle at MalaysianInsider.com

BODOH! Absolute bodoh at its maximum. The one mega-project that we really need and they pull the plugs. This type of 'scared-all-the-business-go-to-Singapore' mentality is so short-sighted and backwards. Obviously none of the people who are making the decisions at the moment have ever taken an Economics class in their lifetime. Have they not heard of MULTIPLIER EFFECTS or SPILLOVER effects??!

Simply BODOH the lot of them.

Singapore -1 Malaysia -0