Monday, June 04, 2018

TOTD: The High Speed Rail



Thought of the Day - The High Speed Rail

Some people ask me what do I think of Tun Mahathir cancelling the High Speed Rail project

Well first of all, we must understand that with such high price tag, it is bound to lose money for a long time to come if it was to be built, especially when it needs to compete with the current air flights between KL and Singapore.


Secondly, although most of the rail and stations were situated in Malaysia, Singapore will benefit most from its construction. This is basically why PAP Government is willing to foot half of the cost of constructing the HSR.

PAP will benefit from the shot up in land prices around Jurong area and it will make it easier for Singapore to attract Talents from Malaysia to come and work in Singapore.

However, it is obvious that PAP Government is facing grave cash flow problem despite of its boast of having huge reserves. Huge mega projects like HSR, Tuas Mega port, T5 @ Changi Airport, New Thomson MRT line etc... are creating an obvious pressure on the government finances, so much so that PAP is planning to raise taxes as well as borrowing to fund all these.

Why would all these multi billion dollars projects come all at once, at the expense of Singaporeans in terms of higher taxes?

Thus in my view, Tun Mahathir had made a timely wise decision to call off the HSR. Of course he did it for the consideration of his country's financial position but indirectly, he will also help Singapore to pause and think whether such mega project is really necessary for the time being.

Going for an expensive HSR which is destined to lose money will only serve the ego of PAP but will bleed us in the long run.

A medium speed rail may be more practical, cost effective and sustainable in the long run.

As for penalty, I would say that in consideration of Malaysia being our closest neighbor and it is struggling with the financial situation in the aftermath of GE14, its current financial and overall stability will also be our Core interests as well. Apart from being a gesture to rebuild our relationship with the new administration, it is also in our interest to see a stable and smooth transition of Powers in Malaysia. We will not be spared if Malaysia face a financial crisis.

Thus, in the spirit of maintaining the legality of contract and rule of law, I would suggest Singapore to impose only a token of fees for the breaking of contractual obligations by the new Malaysian administration.

Goh Meng Seng

7 comments:

Anonymous said...

[Thus, in the spirit of maintaining the legality of contract and rule of law, I would suggest Singapore to impose only a token of fees for the breaking of contractual obligations by the new Malaysian administration.]



Your logic is bias to Melayu. They are ungrateful people meaning the very top who are only interested in filling their own pockets. Besides charity begins at home and even if Singapore forfeited the penalty HSR the money will not distribute to their country but to corruption. Therefore your points are not valid but helping those who have the privileges how to bring money to their own pockets. The one who should help the country suppose to be Mahatir's son who has all the riches stashed away.

Anonymous said...

A Party in default of a Contract remains liable to fulfil it's obligations under the Contract to the other Party(s). Supposedly in the case of the HSR Contract part of those 'default' obligations are Liquidated Damages to an estimated amount of MR500,000,00.00.


Waiving part or all of the prescribed Liquidated Damages would bring any other provisions of the Contract into questions; not to mention any future Contracts.


Contracts are executed in good faith by the Parties serving to protect the Parties and must be abided to by the Parties. No party should set future Precedents especially on a world stage.

Anonymous said...

NEED WHATEVER MONEY THAT IS DUE TO US SO AS TO TARGET gst TO MINUS 9% .

Anonymous said...

KUALA LUMPUR: Malaysia's Prime Minister Mahathir Mohamad said on Tuesday (May 29) that he will inform Singapore about his country's intention to withdraw from the Kuala Lumpur-Singapore high-speed rail (HSR) project. ..

Chicken or Egg?

PETALING JAYA (THE STAR/ASIA NEWS NETWORK) - Malaysian Prime Minister Mahathir Mohamad seemed to walk back from an earlier decision regarding the high-speed rail (HSR) project between Kuala Lumpur and Singapore, telling a Japanese publication that the project had been merely postponed, not cancelled.
Speaking to Nikkei Asian Review on the sidelines of the Future of Asia conference in Tokyo, he said Malaysia cannot afford the project at the moment but signalled that the door is still open.

Anonymous said...

Bad judgement when one have to do businesses with murderers and swindlers like NK & across the causeway. Why not do business with the oppos? The very least they are just sneeky.

Anonymous said...

Luckily got their 60% M plus S in our land from the KMT. Goose wants to play dirty, gander can do sama sama.

Anonymous said...

Balls need to grow like Trump. Inferiority neighbours will act like big bullies!