HSR project to cost RM110 billion, says Azmin

The economic affairs minister says the increase is due to 'hidden costs' including expenditure for land acquisition.

DEWAN RAKYAT

Economic Affairs Minister Mohamed Azmin Ali says the Pakatan Harapan government will be transparent on the HSR project. (Bernama pic)

KUALA LUMPUR: Economic Affairs Minister Mohamed Azmin Ali today said the overall cost of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project would reach over RM110 billion.

He said this was more than the amount estimated by the previous Barisan Nasional (BN) government, which had put the cost at between RM54 billion and RM74 billion.

This was because the previous government had not included the hidden costs, he said.

“The Pakatan Harapan government has the responsibility to expose the overall costs,” he told the Dewan Rakyat.

He was responding to Wee Ka Siong (MCA-Ayer Hitam) who had questioned the increase in the overall financial estimates of the project.

Speaking to reporters at the Dewan Rakyat lobby later, Azmin said the hidden costs included expenditure for land acquisitions.

He said he would be meeting his Singaporean counterpart before the end of the month to discuss the project’s future.

In May, Prime Minister Dr Mahathir Mohamad said Putrajaya would pull out of the HSR agreement with Singapore as it was an “unnecessary project” which would cost RM110 billion.

Singapore however says it is still waiting for official notification of Malaysia’s position on the project’s status.

When asked on the options being considered by the Malaysian government, Azmin said he would not disclose this at the moment.

However, he said PH had a formula to calculate the necessary compensation should the project be called off.

“The PH government will be transparent,” he added.- FMT