Tuesday, 29 May 2018

(NST) Cancelling HSR will create positive impact in long run: Melaka CM

MELAKA: The central government’s decision to scrap the HSR project will create a positive impact in the long-term, as the country will not be saddled with the problem of settling so much debts, said Melaka Chief Minister Adly Zahari.

He said the consideration to cancel the mega project was made after receiving advice and wisdom from experts as well as taking into account the relatively high debt of the country which have to be managed in the best possible way.

“The HSR project is estimated to cost up to RM50 billion and if we were to drop the project, a certain percentage will have be paid as compensation which is less taxing than having to pay the costs and interest in future,” told reporters after launching the state ‘Ihya Ramadan’ programme here today.

Adly added that the short travel time between Singapore and Kuala Lumpur with the implementation of the HSR project could also have a negative impact on Melaka’s tourism sector as more Singaporeans would choose to travel straight to Kuala Lumpur without stopping over in Melaka.

“The HSR project has several advantages and disadvantages but for now we need to be more rational and think of the long-term effects so as not to burden the people and nation,” he said.



Meanwhile in SEREMBAN, Dr Mohamad Rafie Ab Malek said that the cancellation of the Kuala Lumpur-Singapore high speed ​rail (HSR) project will not affect the economic growth of the state.

The State Investment, Industry, Entrepreneurship, Education, Human Capital Committee chairman said this was because there were many other ways to spur the economic growth as the state is strategically located.

“Negeri Sembilan is not far from Kuala Lumpur International Airport and Port Klang and the road network system is good.

“These factors can be utilised for the tourism, agricultural and other sectors … but with the HSR project we are not certain if it can contribute to Negeri Sembilan in a big way,” he told reporters after launching a Ramadan programme here, today.

Elaborating Mohamad Rafie said the HSR mega project was seen to benefit the contractors and would not bring much returns to the local public.

Prime Minister Tun Dr Mahathir Mohamad recently said that the government would drop the HSR project and Malaysia would potentially have to pay compensation due to the cancellation.