Japan pulls out of HSR project. Gov’t to study impact

The government will study the impact of the Japanese rail firms’ decision to opt out of the Kuala Lumpur-Singapore high-speed rail (HSR) project, said Prime Minister Datuk Seri Anwar Ibrahim.

“Will look at it, I just received the report,” Anwar, who is also the Finance Minister, told the media after performing Friday prayers at the Al-Hijrah Mosque in Desa Pinggiran Putra.

Read More News

Japan and the HSR

Kyodo News reports that Japanese firms, including East Japan Railway Co, have decided to drop their plans to get involved in the high-speed rail project. The firm says it “will be too risky without the Malaysian government’s financial support”.

The development could allow rival Chinese businesses to further solidify their footprint in infrastructure building in Malaysia. While Japanese firms are dropping out, several local companies plan to join hands with Chinese and European firms to make bids, a source said to Kyodo.

Meanwhile, Kyodo News added that next Monday (Jan 15) is the deadline for submitting a bid and that the Malaysian government started soliciting bids in July 2023.

The project is expected to cost RM100 billion, but the Malaysian government intends to promote it through private financing rather than by government spending or extending debt guarantees.