Malaysia’s rail prioritisation: prudent or a missed opportunity?

 

From Wan Agyl Wan Hassan

Malaysia’s rail network has long served as a backbone for connectivity, driving economic activities and fostering sustainable development.

However, recent decisions reflect an unsettling pattern of indecision and short-sightedness.

While the government has chosen to focus on domestic rail projects like the East Coast Rail Link (ECRL) and the Gemas-Johor Bahru Electrified Double Track, the indefinite shelving of the Kuala Lumpur-Singapore High-Speed Rail (HSR) raises serious concerns about the nation’s grasp of its long-term economic and strategic opportunities.

The HSR isn’t just about transportation; it represents a once-in-a-generation chance to redefine Malaysia’s economic trajectory and position in the region.

Focusing on projects like the ECRL is understandable. With a RM44 billion price tag, the ECRL promises a much-needed boost to underserved regions, potentially increasing GDP by 3.8% by 2047.

Similar regional rail projects in countries like Canada and New Zealand have prioritised connectivity for less developed areas before embarking on high-speed rail ambitions.

But shelving the HSR indefinitely shows a glaring failure to balance immediate needs with visionary planning. Malaysia cannot afford to ignore the broader transformative potential that the HSR represents.

The Kuala Lumpur-Singapore HSR is not just about connecting two cities; it is about unlocking an economic corridor that could generate immense value for Malaysia.

Studies show the project could add RM21 billion to the GDP of both Malaysia and Singapore, create over 111,000 jobs by 2060, and catalyse RM19 trillion in wider economic benefits.

This scale of opportunity isn’t abstract—it has tangible implications for regions like Johor Bahru, which holds the potential to become a thriving special economic zone, and Kuala Lumpur’s Tun Razak Exchange (TRX), which needs strong connectivity to realise its vision as a financial hub.

Without the HSR, these areas risk falling short of their potential, unable to attract the investment and dynamism that only seamless transportation can provide.

Unfortunately, the government’s approach has been frustratingly narrow. The finance ministry’s probable fixation on fare revenues ignores the broader economic impact of the HSR, while the transport ministry seems too focused on the rail mechanics rather than its strategic importance.

This siloed thinking has resulted in a lack of a clear roadmap for the project, leaving investors and stakeholders unable to see the full picture. Without a strategic plan to outline how the HSR will integrate with key economic zones, drive industrial clustering, or enhance cross-border trade, the project’s transformative potential remains unrealised.

Global examples show what Malaysia is missing. China’s high-speed rail network has driven regional GDP growth through urbanisation and industrial clustering, adding an average of 3.3 percentage points to connected regions.

France’s TGV (Train à Grande Vitesse) revolutionised its economy by linking cities, boosting trade and spurring investment.

Closer to home, Thailand and Indonesia are racing ahead with their high-speed rail ambitions, establishing themselves as leaders in Asean’s infrastructure landscape.

Meanwhile, Malaysia’s indecisiveness continues to erode its credibility. The abrupt termination of the original HSR project with Singapore is a prime example of missed opportunity, compounded by years of delays and a lack of direction since.

The price of this inaction is more than just lost time.

It is costing Malaysia its standing as a regional leader, diminishing investor confidence, and creating a perception that the country lacks the boldness to execute transformative projects.

Thailand’s Bangkok-Nong Khai line and Indonesia’s Jakarta-Bandung route are rapidly progressing, positioning these nations as future leaders in regional connectivity.

Without the HSR, Malaysia risks being sidelined in Asean’s economic integration, losing out on trade, investment, and tourism opportunities.

To unlock the HSR’s potential, Malaysia urgently needs a roadmap. This plan must include clearly identifying key economic hubs like Johor Bahru and TRX, and showing how they can anchor industrial and financial growth.

Public-private partnerships, modelled after India’s successful collaboration with Japan on its bullet train project, could alleviate funding concerns while maintaining government’s control in this key national infrastructure.

Realistic timelines and phased implementation milestones would restore confidence among investors, while integrating the HSR with other rail projects like the ECRL would create a seamless network that ties domestic and regional connectivity together.

Without such a framework, the HSR will remain a pipe dream, and Malaysia will continue to fall behind.

There is also an environmental dimension that cannot be overlooked. High-speed rail offers a low-carbon alternative to road and air travel, aligning with Malaysia’s climate commitments and offering a more sustainable approach to infrastructure development.

By cutting emissions and reducing congestion, the HSR could position Malaysia as a leader in green transportation within Asean. Yet, this angle is rarely discussed, reflecting the lack of strategic alignment between Malaysia’s infrastructure planning and its sustainability goals.

Malaysia’s rail prioritisation has reached a critical juncture. While focusing on immediate connectivity needs through domestic rail projects is logical, it fails to inspire the bold vision necessary for long-term growth.

The HSR is more than just a transport initiative; it is a litmus test for Malaysia’s ambition to lead in the region. The cost of further delays is clear—lost competitiveness, diminished investor trust, and a future where Malaysia is a follower rather than a leader in Asean.

The Kuala Lumpur-Singapore HSR must not remain a deferred dream. It represents an opportunity to reshape Malaysia’s economic landscape, enhance regional connectivity, and solidify the nation’s position in Asean.

What Malaysia needs now is not cautious pragmatism but courageous ambition—a decisive plan to bring the HSR to life. Anything less is a betrayal of the nation’s potential. - FMT

Wan Agyl Wan Hassan is the founder of transport think tank My Mobility Vision.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.