MyHSR Corp to Revive KL-Singapore HSR?

MyHSR Corporation Sdn Bhd (MyHSR Corp) is seeking concept proposals from local and international firms and consortia to develop and operate the Kuala Lumpur-Singapore High Speed Rail (KL-SG HSR) project via a public-private partnership model. A full-fledged request for information (RFI) will be opened to all these three parties to submit their concept proposals. The RFI exercise marks the government's initiative to reactivate the KL-SG HSR project via new funding mechanisms and implementation models. The exercise will allow the Malaysian government to assess the industry’s interest and ability to fully fund the project. 

Source: https://www.propertyguru.com.my

Mooted in 2010 as part of the development of Greater KL, Malaysia and Singapore signed a legally binding bilateral agreement in Dec 2016 for the 350km HSR. There was seven stations planned and shorter travel time between Kuala Lumpur and Singapore to 90 times — from a four-hour drive by car. The railway line was envisioned to be completed by 2026.

The project was terminated in January 2021 by the then prime minister, as Malaysia and Singapore failed to reach an agreement over several changes to the bilateral agreement. Malaysia paid RM320.27 million to Singapore as compensation. 

In March 2023,  the Federal Government had meetings with five Malaysian companies to gauge their interest in pursuing the HSR. The cost of the project was determined at RM60 billion in 2020. The five were: Tan Sri Syed Mokhtar Albukhary-controlled MMC Corp Bhd; WCT Holdings Bhd, controlled by Tan Sri Desmond Lim Siew Choon; YTL Group; Tan Sri Vincent Tan Chee Yioun-controlled Berjaya Group; and Malaysian Resources Corp Bhd (MRCB). At least two of the five companies held high-level discussions with Chinese state-owned enterprises as partners while another appeared inclined to partner a Japanese consortium.

The key will be a proper business model to proceed. The previous model with AssetCo, Infra Co and OpCo need to be revised. Having just an AssetCo for the Malaysian side and another for the Singapore side may suffice. The OpCo is jointly owned by Malaysia and Singapore but the majority shareholder is Malaysia. Debt to equity raised for AssetCo should be 60:40 with a 50-year tenor for the loan and a concessionary fixed rate in ringgit. The Malaysian shareholders should constitute more than 50% while Chinese and other foreign interests may hold the balance. This needs to be developed further with feasibility studies and further negotiations.

Reference:

MyHSR Corp seeks concept proposals to revive KL-Singapore HSR, Priyatharisiny Vasu, TheEdgeMalaysia.com, 12 July 2023