RUNNING OUT OF OTHER PEOPLES' MONEY?

Malaysia's credit rating is shot, and their government is taking a long, hard look at a planned electrified high speed rail line between Kuala Lumpur and Singapore.

Recently elected Malaysian Prime Minister Mahathir Mohamad vowed on May 28 to cancel the Kuala Lumpur – Singapore high speed rail project, with the Chinese-backed East Coast Rail Link also set to be dropped.

Mahathir told local media that a number of major projects would come under immediate review as part of efforts to control Malaysia’s substantial national debt. Despite the air corridor between Kuala Lumpur and Singapore being one of the world’s busiest, Mahathir said the high speed line was ‘unnecessary’ and too expensive. Although Singapore’s Land Transport Authority has yet to receive any formal notice of withdrawal from the bilateral agreement governing the scheme, Mahathir added that his government would look to reduce the financial penalties that would be payable to the Singapore government in the event of the project being cancelled.

The high speed line would have offered an express service between Kuala Lumpur and Singapore taking 90 min, while six intermediate stations served by fast regional trains were also envisaged.

There are meter-gauge lines in Malaysia, and the Kuala Lumpur to Singapore line is not yet double tracked (two main tracks?) or electrified: perhaps those incremental improvements ought be put in place first, the way the Japanese did it (not building the New Tokaido line until the electrified, two-track existing Cape gauge line was congested), and unlike the way California is doing it.  (Who is going to defund California?)  Or perhaps the prime minister is taking a page from Wisconsin governor Scott Walker's playbook, and killing the project, never mind the transition costs.