Business, Economic and Finance: Build the KL-Singapore high-speed train

"The Edge Malaysia, May 10, 2008 - Malaysia's fuel subsidies have reportedly ballooned to some RM43 billion a year. That's more than three times the Treasury's forecast revenue from personal income tax this year of RM13.4 billion, and over 20% more than the forecast corporate tax of RM34.8 billion. And, it is almost half the total estimated federal government revenue of RM102 billion.

Why avoid a one-time capital investment of less than RM8 billion that improves the country's land transport infrastructure, when the country is already spending five times as much on fuel subsidies in a single year that yield no long-term economic benefits?"

As I have mentioned in my earlier posting on the subject, this is one project that should have the full backing by the Government and people of Malaysia. With the latest news on the amount of subsidy that the Government has to pay for all of us to enjoy cheap fuel, creating alternatives is a very good way to ensure we help reduce the dependency on motor fuel.

Internationally, public transportation is the way to go. We should also be looking at this aspect.

In my previous posting, I argued that the true reason for the cancellation was to support AirAsia's Singapore route. I have also heard that due to the strong showing of the opposition in the last general election, the Government is concerned that support for such a project when it is under the control of the private sector can invite a lot of criticism as well as finger pointing and accusation of cronyism and corruption. Here, the Government must have the moral courage to push it through regardless. I, for one, will support the Government is this endeavor.