Reviving High-Speed Rail project can boost economic recovery

 

From Dr Samuel Tham

I refer to HSR revival a worthwhile idea, say experts which appeared in FMT on Sept 30. I agree with the writer.

In fact, former prime ministers Najib Razak and Muhyiddin Yassin two weeks ago spoke of the need to revive the High-Speed Rail (HSR) project that had been put on hold. The duo may be political enemies, often at each other’s throats over a plethora of issues, but on this, they share a common stance.

They spoke on separate occasions in the Dewan Rakyat no less, during the debate on the 12th Malaysia Plan. Cumulatively, the duo have almost one century of administrative and political experience under their belts. Surely their common position on the HSR project, despite their political differences, must amount to something.

During the debate in the august house, both ex-prime ministers had argued that the mammoth infrastructure project could help kick-start the Malaysian economy, badly battered by the Covid-19 pandemic.

After over 20 months of coronavirus-induced slump where both the public and private sectors had been cautious with spending, the economy can do with a jumpstart as we transition into the endemic stage.

Historically, there is nothing like infrastructure spending to yank economies out of the slump. During the great depression, the US government built roads, bridges and dams that provided jobs for millions of its people and put money in their wallets. The same happened during the global financial crisis in 2008.

This is Keynesian Economics 101 where massive public or private spending creates multiplier effects. A contractor undertaking a mega infrastructure project would need to hire workers and pay downstream suppliers to get the job done. With heightened purchasing power, these people would then inject more liquidity into the economy, creating even more jobs and wealth in a seemingly-endless loop.

Isn’t this the kind of stimulus that the Malaysian economy badly thirsts for now? For close to two years, millions of Malaysians have lost their jobs or have had their incomes slashed owing to the pandemic. While the government has introduced a litany of measures to tide Malaysians over, the quick-win solution has always been big-ticket infrastructure spending.

This isn’t the time to be conservative.

Malaysia needs to quickly crank up its economic locomotive and make up for lost time before other emerging economies like Vietnam and Indonesia overtake us.

As of now, the Jakarta-Bandung High Speed Rail is swiftly becoming a reality. Last month, the 142km-long project took delivery of the last batch of Chinese-made 50m rails. With that, the region’s first HSR is on track for completion by next year, with the republic expected to reap massive spillover effects from the high-speed connectivity linking the country’s key economic regions.

Neighbouring countries that used to lag behind Malaysia are now striding forward, growing stronger, better, faster, while Malaysia is still struggling to find its way to recover from the economic conundrum, with no clear or major plans to bring the country out of the economic rut despite the tabling of the 12th Malaysia Plan.

Do we want to be left behind and wait for the country to export its people as maids and labourers before we wake up and do something for the people and the country? What competitive advantages are we developing and generating for the people?

Malaysia is in dire need of better public infrastructure. At a time when the world is facing an impending climate crisis, importance should be afforded to building public transport systems which are more sustainable than cars or planes. How is it that we can build highways and bridges and skyscrapers but not a HSR that would bring numerous benefits to the country?

We need to stop dilly-dallying over our own HSR project. Muhyiddin had proposed that the project, first mooted by Najib in 2010, extend all the way to Bangkok from Johor Bahru. This after the planned Singapore-KL HSR track was scrapped in January this year over a disagreement by both countries on the appointment of the company to undertake the project.

With or without Singapore’s participation, Malaysia stands to reap immense economic returns in the long-run from the HSR project with its high-speed land connectivity to major towns and cities within the country and beyond. A HSR will not only bring more convenience to Malaysians, it has the potential to revive local economies and lead to their regeneration. It will redirect development and economic opportunity to other parts of Malaysia besides the Klang Valley.

The usefulness of a HSR extends much further than connecting us to our city-state neighbour, although the future potential for that connection can always be revisited.

There is no time to lose. With the pandemic derailing our economic growth trajectory, the HSR will keep this nation not just back on track, but speed up our journey towards embracing the vibrant global economy. - FMT

Dr Samuel Tham is an FMT reader.

The views expressed by the writer do not necessarily reflect those of MMKtT.

✍ Credit given to the original owner of this post : ☕ Malaysians Must Know the TRUTH

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