Sultan Ibrahim Iskandar, the King of Malaysia, is actively seeking investment from Chinese state-owned companies to fund a multi-billion dollar high-speed rail project connecting Malaysia and Singapore, Bloomberg reports.
This move comes as the King embarked on a four-day state visit to China, hosted by President Xi Jinping, to strengthen strategic ties between the two nations.
The King’s delegation includes representatives from YTL Corporation, a Malaysian company shortlisted for the project. While YTL has expressed interest, it hasn’t yet confirmed its participation in the bidding process.
The proposed high-speed rail line, initially envisioned as a government-funded project, was revived last year by Prime Minister Anwar Ibrahim’s administration with the stipulation that it would be funded by private entities. The King has been a strong advocate for the project, suggesting a private consortium could finance and operate the rail link for 30 years before returning it to the Malaysian government.
The project has faced several hurdles in the past, including high costs and political changes. Former Prime Minister Mahathir Mohamad postponed the project in 2018 and it was formally canceled in 2021. The project’s feasibility is currently under review by the Malaysian cabinet, with a decision expected by the end of the year. Singapore’s approval would also be required for the project to proceed.
China’s interest in supporting the project has been evident. During a visit to Malaysia in June, Premier Li Qiang expressed China’s willingness to assist in the development of major infrastructure in the country. This commitment aligns with China’s Belt and Road Initiative, which aims to promote global infrastructure development through investments in various countries.
While the Malaysian government has indicated a preference for a consortium with at least 51% Malaysian ownership, the involvement of Chinese investors could significantly impact the project’s future and potentially accelerate its development.
