Chief executive officer Mohd Nur Ismal Mohamed Kamal said the GNI contribution is based on the spillover effect in the rail and supporting industries as a result of developing HSR capabilities in 2035.
“The government of the day has the full right to decide on it.
“But benefits from this project stem from many different areas, including the planning, construction, operations and maintenance.
“The spillover benefits are so huge that it will be a wasted opportunity if we don’t proceed with the project,” he told reporters at a briefing on the update for the project here today.
MyHSR Corp, wholly-owned by the Minister of Finance Incorporated, is the project delivery vehicle for the KL-Singapore HSR project.
Nur Ismal said among the project’s benefits were the creation of seven mega cities at the HSR stations, namely Johor Bahru, Batu Pahat, Muar, Melaka, Seremban, Sepang and Bandar Malaysia, and business opportunities for local contractors from its construction.
“The 60 civil work packages will result in over 5,000 sub-contract packages being offered to local firms, which will stimulate the growth of local industries.
“More than 40% in value of the civil work packages will be allocated to Bumiputera companies,” he added.
Nur Ismal said MyHSR Corp supported the push for localisation and had at the start of the procurement process emphasised the importance of local players in the project.
“Opportunities for Malaysian contractors are plenty in these civil work packages, ranging from advisory, engineering and design, certification, testing and commissioning.
“Keeping the job pipeline local will in turn contribute directly to the Malaysian economy,” he said.
He said the HSR is also expected to generate more than 70,000 jobs to deliver the civil works packages and help build up human capital among young graduates and vocational students.
“They get to be up to date on the latest skills in HSR development, which is the pinnacle of railway engineering,” he added.
Nur Ismal said apart from losing the economic benefits, Malaysia would have to bear the cost of cancelling the project, as well as compensation for abortive costs in Singapore.
He declined to disclose the value.
Former Prime Minister Dr Mahathir Mohamad had previously stated his opposition to the HSR project, citing financial constraints as a reason.
The Pakatan Harapan coalition chairman said the HSR contract signed between Malaysia and Singapore may not be a done deal if the opposition comes to power.
Expected to be completed in December 2026, the HSR would reduce travel time between Southeast Asia’s two most vibrant cities, Kuala Lumpur and Singapore, to 90 minutes and catalyse socio-economic development as well as the growth of cities along its route.