Malaysia relaunches its plan to launch the Singapore Malaysia high-speed railway, with Chinese companies bidding for it

"Malaysia is restarting its' ambitious' high-speed rail plan amidst numerous obstacles," according to a report by Nikkei Asia Review on the 6th. Malaysia is restarting its first high-speed rail project connecting the capital Kuala Lumpur and neighboring Singapore, after the two governments failed to reach an agreement on an early version of the project. The 7 recently submitted proposals come from a team led by China Railway Construction Corporation of China, Hyundai Le Tie Company of South Korea, as well as local Malaysian enterprise groups such as MMC Group, Jinwu Group, Yang Zhongli Group, WCT Holdings, and Success Group. However, during the letter of intent submission phase that ended on January 15th, the Japanese company did not submit a proposal.
Japan's absence does not affect progress
According to the Malaysia Straits Times, there are reports that some Japanese companies have chosen not to participate in the information solicitation, but the proposed Long Singapore high-speed rail project will not be affected in any way.
In January, Malaysia's Minister of Transport, Lu Zhaofu, stated, "Whether or not to participate depends on the Japanese company. Their failure to participate in the information consultation does not mean that we will stop the project because one party is not interested, as hundreds or thousands of companies have expressed interest in the project."
According to Kyodo News Agency, companies including East Japan Railway Company had hoped to use the Japan Shinkansen system in the project, but they believed that without financial support from the Malaysian government, the risk would be too high.
Sources have revealed that due to the withdrawal of Japanese companies, several Malaysian companies plan to collaborate with Chinese or European companies to bid for the Longxin high-speed rail project. China completed the construction of high-speed rail projects in Indonesia last year, and the Thai high-speed rail project in which Chinese enterprises participated is also under construction. If Chinese enterprises win the Longxin high-speed rail project again, it will further consolidate their advantageous position in the Southeast Asian market.
Candidate list may be released this month

Sources told Nikkei Asia Review that after a preliminary review of the plan and considering the financing methods of the project, the Chinese team consisting of China Railway Construction, China Communications Construction, and China Export Import Bank is considered a strong candidate for the shortlist. Sources also stated that Malaysia's high-speed rail company will prepare a candidate list of three to four teams for the next phase of proposal solicitation as early as this month, and submit a review of the bid to the Malaysian Cabinet. The Malaysian government is expected to submit relevant plans to Singapore in the coming months to determine whether Singapore will participate in the project.

A Malaysian official stated that if Singapore does not participate in this project, Malaysian high-speed rail companies will also explore extending the line from Kuala Lumpur to the southern state of Johor. As the resumption of the Long Singapore high-speed railway coincides with Malaysia's increasing momentum to strengthen its transportation system and help Johor become a regional investment destination. In January of this year, Malaysia and Singapore signed a memorandum of understanding to jointly develop an economic special zone in Johor as a new engine of economic growth.
Ge Hongliang, Vice Dean of the ASEAN College of Guangxi University for Nationalities, stated in an interview with Global Times on the 7th that the background of the restart of the Longxin high-speed railway is directly related to the connectivity of the entire Southeast Asian infrastructure, economic recovery, and other needs. Secondly, the China Laos Railway and Ya'an Wanzhou High speed Railway that have been put into operation have had a positive impact on Laos and Indonesia, and the China Thailand Railway under construction has also given Thailand a taste of "sweetness".
Facing financial challenges
However, according to Singapore's Lianhe Zaobao, on the 4th of this month, the Ministry of Transport of Malaysia reiterated that the government would not provide any loan guarantee for the team that obtained the Long Xin high-speed railway project. The Malaysian government's position is to complete this project with private funds, therefore the government will not inject capital into it. The teams interested in bidding all hope that the government can soften or even change its stance and agree to provide guarantees for the project. The Lianhe Zaobao said that the road ahead of the Longxin high-speed railway project is still winding and bumpy because the Chinese side is also alert to possible financial burden problems.
"The political challenges and risks also deserve attention." Ge Hongliang said that although the unity government led by Anwar is relatively stable, considering the struggle of Malaysian political parties and the pressure of treasury bond, there may be different opinions on the construction plan of the Long Xin high-speed railway in Malaysia. In addition, in the context of competition among major powers, it is not ruled out that Western countries will further exert pressure on Southeast Asian countries, putting them under pressure to choose sides and take sides in this project.