Cancellation of High-Speed Rail (HSR) project

The Straights Times 
JAN 8, 2021, 3:42 PM (Kuala Lumpur, Malaysia)

High-speed rail project cancellation just tip of the iceberg in Malaysia's recent rail controversies

KUALA LUMPUR - Malaysia's cancellation of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project is the latest in a series of controversies involving train projects that has cast a light on the governance of these billion-dollar deals.

Since the Perikatan Nasional (PN) government came to power 10 months ago, at least two other tracks which traverse Kuala Lumpur's greater metropolitan area are facing government intervention over the selection of contractors.

The RM4.4 billion (S$1.44 billion) Klang Valley Double Tracking Phase 2 (KVDT2) deal was terminated abruptly in August after Transport Minister Wee Ka Siong said the award should be retendered, leading to a civil suit by the appointed firm, Dhaya Maju LTAT.

Meanwhile, Umno MP Tajuddin Abdul Rahman's chairmanship of Prasarana has also invited scrutiny, especially after the national public transport firm's decision to withhold up to RM1 billion owed to a consortium tasked with building the Light Rail Transit 3 (LRT3).

Datuk Seri Tajuddin, the election director of Malaysia's largest party, cited Prasarana's liquidity problems and the lack of bumiputera sub-contractors selected by turnkey developer MRCB-George Kent (MRCBGK) for withholding the sum in the RM17 billion project.

These government interventions have led to calls from across the political divide as well as civil society for more transparency, with some implying cronyism was at play.

Source:

https://www.straitstimes.com/asia/se-asia/high-speed-rail-project-cancellation-just-tip-of-the-iceberg-in-malaysias-recent-rail