The revived Kuala Lumpur-Singapore High-Speed Rail (HSR) will not involve Japanese firms, who have opted out of the project.

According to Kyodo News, Japanese companies like the Japan East Railway Co. had initially weighed up submitting a bid for the project — a proposal which would have seen the HSR utilise the Shinkansen bullet train system.

However, they eventually decided that participation in the HSR would be too risky without financial support from the Malaysian government, reported Kyodo News, citing sources from both the Malaysian and Japanese governments.

The Malaysian government plans to promote the project — expected to cost RM100 billion (S$28.68 billion) — through private financing rather than government spending or extending debt guarantees.

Jan. 15, 2024, is the deadline for bids to be submitted.

When asked on Friday (Jan. 12) about Kyodo News' report on the Japanese firms dropping out, Malaysian Prime Minister Anwar Ibrahim was quoted by the Malay Mail as saying that he would have to review it before commenting further.

Background

The HSR project was revived by Anwar's government in 2023 after it had been terminated by a previous administration in 2021.

The railway would see travelling times between Singapore and Kuala Lumpur cut to 90 minutes, with stops at Muar and Melaka along the way.

Kyodo News reported that the exit of Japanese firms from the project could open the door for Chinese companies to solidify their presence in the region.

The first high-speed rail in Southeast Asia was completed in 2023 in Indonesia and included the participation of Beijing’s China Railway International.

China also has another high-speed rail project currently underway in Thailand.

Apart from partnering with a Chinese firm, Kyodo News mentioned European firms as another potential bidder for the HSR project.

Top image from Fikri Rasyid via Unsplash and SG HSR