‘Bullet train not economically viable’

Transit adviser Rajiv Risyhakaran said the RM40 billion bullet train project between Kuala Lumpur and Singapore will be loss-incurring venture if not many people are using the service.

PETALING JAYA: The government’s high speed rail link project between Malaysia and Singapore is not economically viable, Bukit Gasing assemblyman Rajiv Risyhakaran said today.

Rajiv was responding to Tokyo’s announcement yesterday that Japan hoped its bullet train technology would be chosen for the RM40 billion project.

Japan is facing competition from China over the project, which is scheduled to be completed in 2020.

“Even though we don’t have the exact figures, the service is unlikely to break even,” Rajiv, who is also Transit (Association for the Improvement of Mass Transit) adviser, told FMT.

Rajiv said the Eurostar from Paris to London with a frequency of every half an hour could not break even with a ticket costing 100 euros each.

“With a ticket priced at RM170 a head, our earnings will be significantly be lower. I cannot imagine the service breaking even,” he added.

Rajiv said a local bullet train would have carry a large number of passengers to cover operation costs, including electricity, maintenance and staff salary.

“How many passengers would it have to take a day just to break even?” he asked.

Rajiv said it was important for the Land Transport Authority (SPAD) to disclose the exact figures to concerned stakeholders to reinforce public confidence in the project.

“It does not seem economically viable, unless we have the exact figures. This is something SPAD has to answer,” he said.

Economist Michael Lim said the project could boost the economy “if done in the right way”.

“If they do the maths correctly, then I think it would be a big boost to the economy. It would make transportation more efficient,” he said.

However, Lim said RM40 billion price tag was very high and the cost need to be determined in detail.

Improve public transportation first

Institut Rakyat economist Azrul Azwar Ahmad Tajuddin said the RM40 billion would be better spent improving public transportation in urban areas nationwide.

“Rather than connecting Singapore and Malaysia, improving the public transportation system can help lower the cost of living and is good for the environment because there will be fewer cars.

“For sure it will give stiff competition to air travel and buses, but the price tag is quite substantial. I think it is better to improve public transportation, especially inter-city rail,” he said.

Yesterday, Japan’s prime minister went into bat for the country’s high speed train technology in a meeting with his Malaysian counterpart, as part of his bid to boost infrastructure exports.

Shinzo Abe told Prime Minister Najib Tun Razak that Japan’s rail know-how was second to none as the two men met ahead of a special summit between Tokyo and Asean.

In September, Najib announced that Malaysia is to spend some RM160 billion on rail-related projects, including a high-speed train service to Singapore by 2020.

The 330km rail line would cut commuting time between the two countries to 90 minutes.