KUALA LUMPUR: The RM38.4 billion Kuala Lumpur-Singapore high-speed rail project should not be seen only as a transportation upgrade but one should also observe the domino effect it would have on both Malaysia and its neighbour.
Economic analyst Hoo Ke Ping said the project, once completed, would benefit both countries and “we would enter a new phase of tourism by having more foreign tourists coming into Malaysia.
“Although the project is concentrated mainly in Johor, neighbouring states, such as Malacca, Negri Sembilan and Kuala Lumpur, would also benefit from it,” he told Business Times yesterday.
“We could expect an increase in property growth as well as other sectors as the result of the rail construction.”
Hoo also dismissed the notion that more Malaysians would be working in Singapore once the project was completed.
“I think quite the opposite will happen. More Singaporeans would be coming over to Malaysia for obvious reasons, such as shopping and a lower currency exchange rate.
“Singapore had already imposed a ruling that businesses could only employ foreigners for jobs offering salaries of more than US$12,000 (RM39,000). So, the speculation is baseless.”
On a related matter, Hoo said with the Kuala Lumpur-Singapore airline route being one of the most profitable course, local carriers should start mulling over other route possibilities.
“Maybe local airline companies, such as Malaysia Airlines and AirAsia, should strategise to find replaceable routes that could bring in as much profit as the Kuala Lumpur-Singapore route.”
An economist, who wished to remain anonymous, said the impact of such a project would be good in terms of connectivity between Singapore, a developed economy, and Malaysia, a fast developing economy, which, in turn, would spur growth in both countries.
“Singapore is a financial epicentre, and since Malaysia aspires to be an Islamic financial hub, the improved connectivity should ease networking and the allocation of resources between the two countries.
“The multiple stops in the rail link would also accelerate local businesses at nearby areas.”
Source: http://www.nst.com.my/node/45270
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