The High-Speed Rail (HSR) link between KL-Singapore, which is scheduled to begin next year, is estimated to have an economic impact of RM100 billion in gross domestic product (GDP).
The Prime Minister’s Department Senator Datuk Seri Abdul Wahid Omar said a special purpose vehicle (SPV) to function specifically as a project delivery vehicle will be formed.
He stated that the SPV is similar to the MRT Corporation formed for the development of the MRT project earlier.
Abdul Wahid said Parliament has approved the proposal to form the SPV as a company responsible for the development of this HSR project on behalf of the government.
Out of the RM100 billion the HSR project is estimated to bring, RM70 billion will be generated through construction, operational and multiplier impact activities he said.
“Whereas the remaining balance of RM30 billion is expected to be generated through wider economic benefits from the rising activities in the property and tourism industries as well as the services sector,” he said in a parliamentary written reply dated June 25.
Abdul Wahid was responding to Senator Chia Song Cheng, who asked the government to state the details of this HSR project as it was not stated in the in the 11th Malaysia Plan.