Referring to the absence of a requirement for local partners in companies bidding for the job, Yeah Kim Leng of Sunway University said Malaysian companies could benefit as sources of supplies and services.
Malaysia’s MyHSR Corp Sdn Bhd and Singapore’s Land Transport Authority have told potential investors in London that the tender for what they referred to as AssetsCo would be “open and fair”, without any requirement for bidders to have local partners.
AssetsCo will be responsible for designing, building, financing and maintaining all rolling stock. It will also build, operate and maintain rail assets such as rail works and power and signalling systems.
The tender is expected to be called at the end of the year.
Speaking to FMT, Yeah said much of the supplies and services would likely be sourced locally, to the benefit of local companies.
Moreover, he added, there would be “some form of knowledge transfer because there will be localisation in terms of maintenance and operations”.
He also said costs were likely to be higher if there was a requirement for a local partner.
“If you’re forced to take on a local partner, but it doesn’t have the capabilities and expertise to do the job, it will only push up costs as these capabilities and expertise must come from somewhere else.”
The 350km HSR, which will cut travel time between Kuala Lumpur and Singapore to 90 minutes, is targeted to be operational by the end of 2026.
The project, expected to cost more than RM60 billion, has come under much criticism, with former World Bank economist Lim Teck Ghee saying it might not be cost-effective and that existing transport and infrastructure systems were good enough.
Pakatan Harapan chairman Mahathir Mohamad has said that the coalition, if it came to power, would review the HSR and all other mega projects.