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PETALING JAYA:
The termination of the Kuala Lumpur-Singapore high speed railway (KL-SG HSR) bilateral agreement, movement control order (MCO) 2.0 and the state of emergency declaration have dampened the construction sector’s catalyst-driven positive outlook for first-half 2021, according to CGS-CIMB.
“At this juncture, we feel that the speed of the construction sector’s recovery could remain muted but still backed by Budget 2021’s RM37 billion direct infrastructure allocation,” it said in a report.
From its channel checks, the research house found that a revised version of the MRT 3 project could be given the green light ahead of following the termination of the SG-KL HSR project, ahead of the ongoing feasibility studies on the alternative Kuala Lumpur-Johor Baru high speed rail (KL-JB HSR).
THE termination of the Kuala Lumpur-Singapore high-speed rail (HSR) project is a setback for the property developments that had hoped to tap the potential of the mega transport endeavour.
While there has been talk of having a domestic HSR from KL to Johor Baru, there is no certainty as to whether it will materialise in the near term. Thus, the gestation period for Bandar Malaysia the HSR terminus in KL and Vision Valley 2.0 projects could take longer than planned.
However, a corporate observer familiar with the Bandar Malaysia development is unfazed by the possible delay as a result of the termination. “This project is not going to happen in five years. So, what is the difference if it is extended by another five years? After all it is a 20- to 30-year project,” she tells The Edge.
MALAYSIA will embark on a detailed study this year to see how it can maximise economic and social returns should a decision be made to proceed with the building of a high speed rail (HSR) network in the country.
According to MyHSR Corporation Sdn Bhd (MyHSR), the special purpose company to spearhead the project on the Malaysian side, the study is expected to take up to six months.
If Malaysia decides to proceed with building a HSR network, it is possible to have as many as four new domestic HSR services, said MyHSR Corp chief executive Datuk Mohd Nur Ismal Kamal at a recent press briefing, following the lapse of a bilateral agreement signed with Singapore on Dec 13,2016 to have a cross border HSR service from Bandar Malaysia to Jurong East, Singapore.