Estimated reading time: 7 minutes
Still remember the RM100 billion High-Speed Rail (HSR) project that could cut KL to SG journey to just 90 minutes?
In this blog, we’ll take a closer look at the project, from its ambitious beginnings to why it’s paused, and most importantly its current status now. We’ll also explore what this project could mean for Malaysia’s economy and property market, and discuss if this is a project that’s worth reviving, or a burden we’re better off without?
TABLE OF CONTENTS
What is HSR?
HSR or High-Speed Rail is designed for medium-distance travel, usually between 150km and 800km. Trips shorter than that are usually easier by car, while anything longer is quicker by plane. Here’s a quick look at where HSR exists around the world.
Source: World Population Review
The Early Dream
2013: Discussion
The idea of linking Kuala Lumpur and Singapore with a high-speed rail first appeared back in the late 1990s. Both countries discussed for years and finally moved forward in 2013.
2016: Signed MoU
In 2016, the plan took a big step closer to reality when the MoU was signed. The goal was clear, cutting road travel and to tap on the opportunities that come along that is about RM21 billion boost to Malaysia’s GDP and 110,000 of jobs by 2060.
2018: HSR U-turn
After Malaysia’s 2018 General election, the new government under Tun Dr. Mahathir put the HSR on hold and the project was officially suspended until May 2020, with its completion date pushed all the way to 2031.
2020 – 2021: Vision Clashed
Just as the negotiations were set to resume, COVID-19 happened and put everything on hold again. At the same time, Malaysia wanted to remove the neutral “AssetsCo” operator and shorten the route to Johor. Singapore pushed back the idea and by 2021 the project was terminated.
In the end, Malaysia paid RM320 million to Singapore as compensation.
2023: So, is HSR still on?
In 2023, Prime Minister Anwar Ibrahim revived hopes for the HSR, but with one condition, it must be fully privately funded.
By March 2024, three consortiums had made it to the shortlisted:
- YTL Construction and SIPP Rail
- Berjaya Rail, IJM Corp, and KTMB
- China Railway Construction Corp (CRCC)
As of September 2025, no final decision has been made.
But Is the HSR Really Worth It?
With the Johor-Singapore Rapid Transit System (RTS) launching in 2027 for short commutes, do we still need the HSR?
This is how it looks like today when you need to travel from KL to SG with different mode of transportation (including transfers, border delays, traffic and immigration):
- KTM Train: ~9.5 hours with transfers and border delays.
- Bus: ~6.5 hours, traffic congestion and immigration.
- Flight: ~4.2 hours, including check-ins and waiting.
But with HSR? Just 2.5 hours for less than RM 200 per single trip, with lower carbon emissions than driving and flying.
More than just travel convenience, a PwC study also shows that every RM 1 spent on infrastructure could generate RM 1.80 in economic output. Meaning projects like HSR can multiply their impact far beyond just transport.
Property Ripple Effects
Source: EdgeProp
A clear example of this impact is in the property market. The HSR is opening doors for developers and property investors. In Iskandar Puteri, for example, projects like Melia Residences and Leisure Farm are already seeing price hikes thanks to being right next to where the station is planned.
And then there’s Bandar Malaysia in KL, a project many see as a big thing, could potentially benefit from this HSR project as well. While nothing is confirmed yet, it is planned to be an international business hub and the third icon of Malaysia after KLCC and Putrajaya.
And these are just some of the many projects closely tied to the project. There are so many other property developments along the line connecting 8 locations.
After all, location, connectivity, and convenience have always been a factor of demands in property and prices naturally follow. Just look at how the property prices near HSR stations in Taiwan have increased significantly back then.
For investors, projects like the KL-SG HSR don’t just move people, they also move markets. If you’re exploring regional growth opportunities, Interactive Brokers (IBKR) lets you invest in Malaysian and global stocks related to transport, construction and property.
Now, HSR’s potential could just be partially priced into the current property prices. What will happen to these property prices when the HSR is fully operational? Fruit for thought.
The Benchmark
High-speed rail isn’t new. Around the world, countries have seen both remarkable success stories and troubled dreams. Let’s look at a few examples,
Where it worked
- Japan’s Shinkansen (Tokyo-Osaka): Famous of high passenger demand and incredible punctuality
- China’s HSR (Beijing-Shanghai): Still one of the busiest routes in the world.
Where it struggled
- California HSR: Stuck for decades in development due to budget overruns.
- Taiwan HSR: Faced near-bankruptcy after low-ridership.
The Challenge
Finding private investors for a RM 100 billion project isn’t easy. So far, only China Railway Construction Corp (CRCC) seems to be ready to fund the whole project, but foreign ownership raises concerns.
Foreign ownership = economic spillover could flow back oversea
So even if the Chinese consortium wins the tender and our government requires them to take on a bumiputera partner, should Malaysia allow a major national infrastructure project to be primarily foreign-owned?
Final Thoughts
The KL-Singapore HSR could transform travel, supercharge economies, and boost property markets. But building something across two countries is never simple. Every step from land acquisition to customs and immigration agreements, takes years and adds more costs. Take the Second Link bridge for example, just 1.9 km, it took 18 years and RM 3 billion to complete. Now imagine a 350 km HSR, far more complex, with politics in the mix. Whether private funding can keep the dream alive is still an open question.
If you prefer a video version of this article, I have made a video covering the exact same thing – do check it out here!
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