Loke said the HSR differs from other rail projects, including Keretapi Tanah Melayu Bhd (KTMB), which is fully funded, constructed, and maintained by the government.

“The HSR must be a privately funded initiative,” he told a press conference after an event in Seremban today, The Edge reported.

“In contrast, KTMB operates as a government project. The HSR, however, is an entirely different concept. That is why we have decided that any party interested in implementing the HSR must do so through private-sector investment,” he said.

Last week, former Umno Youth chief Khairy Jamaluddin said some level of government financing is needed to get the HSR project off the ground given the significant costs involved.

If not directly through investments, it could be in the form of grants or loans to private consortiums building the HSR, he said.

Khairy also said that at the very least, Putrajaya will likely need to step in for land acquisition, which is a major cost.

On Friday, Berjaya Group founder Vincent Tan urged the government to thoroughly assess the economic feasibility and financial viability of the HSR project before proceeding, given its significant cost.

Berjaya is looking for a new partner for its HSR bid after Malaysian Resources Corp Bhd withdrew from the consortium.

Previously, Prime Minister Anwar Ibrahim said the HSR project could be revived if there was full participation from the private sector, with minimal government involvement.

He said the government’s current position was to invite the participation of the private sector because the government had limitations.