Request For Information (RFI) Notice Closing on 15 Jan 2024
Background and Objective - The Government of Malaysia (GOM) aims to improve intercity mobility with a view to generate socio-economic development through reduced journey time, safe and seamless travel, and enhanced accessibility to our second and third-tier cities. With this aim in mind, the GOM intends to implement our first High Speed Rail line in the southern corridor of Peninsular Malaysia. MyHSR Corporation Sdn Bhd (MyHSR Corp), a company wholly-owned by the Minister of Finance (Incorporated), has been tasked to initiate an RFI to solicit concept proposals from local and international industry players to assess their readiness and capabilities, while gathering innovative business models and supplementary revenue-stream ideas for a privately funded structure.
KL-Singapore high speed rail project receives seven concept proposals
The seven local and international consortia comprise 31 firms that represent the full spectrum of the KL-SG HSR project. Photo: Bloomberg
Seven local and international consortia, comprising 31 firms that represent the full spectrum of the Kuala Lumpur-Singapore High Speed Rail (KL-SG HSR) project, have submitted concept proposals to MyHSR Corporation on Jan 15, the deadline for submissions.
The submission of concept proposals for the KL-SG HSR project was in response to the request for information (RFI) exercise that MyHSR Corp launched in July 2023 to invite local and international players from the private sector to deliver the project based on a public-private partnership initiative on the Design-Finance-Build-Operate-Transfer (DFBOT) model.
The 350 km-long KL-SG HSR was first mooted in 2013 before a binding agreement was signed in Dec 2016 with a target to have the line operational by 2026. The project was postponed and eventually scrapped officially in Jan 2021 under a subsequent Malaysian government. Singapore received compensation of more than $102 million for costs incurred. “The findings from the RFI evaluation will be presented to the Ministry of Transport and the Cabinet for deliberation,” says MyHSR Corp chairman Haji Fauzi Bin Abdul Rahman. “If the response is positive, we will move on to the second phase with the request for proposal (RFP) stage to obtain detailed proposals from the selected consortia, he adds.
Japanese firms drop out of Malaysia-Singapore high-speed rail project, Kyodo News reports
The on-again, off-again 350-kilometre high-speed rail link would cut travel time between the centres down to about 90 minutes. Photo: Bloomberg
Japanese firms have decided to drop their plans to get involved in a high-speed rail project connecting Kuala Lumpur and Singapore, government and company sources said on Thursday. In a report on Friday, Japanese agency Kyodo News, citing sources, said the companies, including East Japan Railway Co, had hoped to utilise Japan's Shinkansen bullet train system in the project but they have decided it will be too risky without the Malaysian government's financial support. The report said the sources included those at the Japanese and Malaysian governments.
The development could allow rival Chinese businesses to further solidify their footprint in infrastructure building in East Asia after they completed a high-speed railway in 2023 in Indonesia and are currently building another in Thailand. Kyodo News added that next Monday (Jan 15) is the deadline for submitting a bid. The Malaysian government started soliciting bids in July 2023. The project is expected to cost RM100 billion, but the Malaysian government intends to promote it through private financing rather than by government spending or extending debt guarantees. While Japanese firms are dropping out, several local companies plan to join hands with Chinese and European firms to make bids, the sources said. The Malaysian government is set to narrow down candidates within several months and will start full-fledged negotiations with the Singaporean government later this year at the earliest.
The Malaysian and Singaporean governments initially reached a basic agreement in 2013 on the project, which called for building a 350km-long high-speed rail link that would cut travel time between Kuala Lumpur and the city-state to just 90 minutes, compared with over four hours by car. From Japan, East Japan Railway and major trading house Sumitomo Corp showed interest in joining the project. In 2015, then Japanese transport minister Keiichi Ishii pitched the Shinkansen system to Malaysian government officials during a visit to Kuala Lumpur. In 2021, then prime minister Tan Sri Muhyiddin Yassin cancelled the project due to concern over financial burdens before the current administration of Prime Minister Datuk Seri Anwar Ibrahim officially revived the project.
Japanese firms withdraw from Malaysia-Singapore high-speed rail project
Japanese firms withdraw from Malaysia-Singapore high-speed rail project, including East Japan Railway Co., The Edge Singapore reports. Japanese agency Kyodo News reported that Japanese firms initially intended to use Japan’s Shinkansen bullet train system for the project. However, according to sources from both the Japanese and Malaysian governments, they deemed it too risky without financial support from the Malaysian government.
As per The Edge Malaysia, the decision by Japanese companies creates opportunities for Chinese businesses, which have completed a high-speed railway in Indonesia and are currently working on one in Thailand, to play a more significant role in East Asian infrastructure projects. While Japanese firms withdraw, local companies reportedly plan to collaborate with Chinese and European counterparts to submit bids. The deadline for bid submissions is Jan 15, as reported by Kyodo News.
The Malaysian government initiated the bidding process in July 2023, with an estimated project cost of RM100 billion. Malaysia aims to promote the project through private financing, avoiding reliance on government spending or debt guarantees. As Japanese companies step back, the focus shifts to potential collaborations between local and international entities. The bidding process is expected to continue with diverse options, and a shortlist of candidates may be announced within the next few months. This paves the way for substantive negotiations between the Malaysian and Singaporean governments later in the year. The high-speed rail project was initially agreed upon in 2013, and it faced challenges, including its cancellation in 2021 due to financial concerns. The current administration of Prime Minister Datuk Seri Anwar Ibrahim revived the project. Singapore’s acting minister for transport, Chee Hong Tat, mentioned in Aug 2023 that Singapore is open to restarting the project but has not received any new proposals from Malaysia.
Japanese firms drop planned bids on Malaysia-Singapore high-speed link
Japanese companies have dropped plans to bid on constructing the high-speed rail project between Kuala Lumpur, Malaysia and Singapore over concerns about the lack of financial support from the Malaysian Government. Reports in Japan said interested companies, including East Japan Railway, had planned on bringing the country’s Shinkansen, or bullet train, system to the project but decided investment would be too risky without government support.
The $21bn project has faced several setbacks since it was first agreed between Malaysia and Singapore in 2013, being cancelled in 2020 before being resurrected in July last year. Malaysia is hoping it will be able to finance the latest attempt through private investment instead of using public funds towards its construction. Japanese companies’ abandonment of the high-speed line brings more concern to the project given the country’s long-term interest in the idea, including a visit by its then Transport Minister Keiichi Ishii in 2015 to pitch the shinkansen system to officials. Along with East Japan Railway, trading house Sumitomo had also shown interest in supporting the project during its initial proposal.
However, it is expected that Chinese businesses will step in to replace their bids given the country’s recent involvement in the completion of a high-speed railway in Indonesia, and ongoing construction of another in Thailand. The Malaysian government will stop taking bids for the project on 15 January after a seven-month process, with negotiations expected to begin with the Singaporean government later in the year after a list of candidates has been drawn up. Though the government was previously forced to pay Singapore more than $76m in compensation when it failed to act on their previous agreement, the island country’s government said it was open to “good faith” discussions in 2022.
Deadline for KL-Singapore HSR concept proposal submission extended to January 2024 on bidders’ requests
MyHSR Corp Sdn Bhd said the extension of the deadline to January next year for the KL-SG HSR proposal submission was due to the 'requests from international and local industry players in recent weeks'
The deadline for submission of concept proposals for the Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) has been extended from Nov 15, 2023 to Jan 15 next year. MyHSR Corp Sdn Bhd, which has the mandate to develop the HSR, said the extension of the deadline for the KL-SG HSR request for information (RFI) was due to the “requests from international and local industry players in recent weeks”.
“More than 60% of the companies, which had indicated their commitment to submit concept proposals for the KL-SG HSR project that was originally scheduled by Nov 15, have requested for an extension of time as they required more time to form consortium with potential partners and explore financial options, among others,” MyHSR said in a statement on Tuesday. MyHSR had on July 27, conducted the RFI briefing for the KL-SG HSR project, which drew more than 700 local and foreign participants representing the full spectrum of the project.
The briefing explained the overview of the RFI process, including the timeline for local and international firms as well as consortia to submit concept proposals for the KL-SG HSR project based on a public-private partnership initiative and deliver the project based on the design-finance-build-operate-transfer (DFBOT) model. Participating firms and consortia are required to demonstrate technical expertise and overall ability to develop and operate this major infrastructure system and services with the required resources and within the budgeted cost, quality and time. They are also required to demonstrate viable commercial and business models as well as consortium and governance frameworks. To date, MyHSR has sold more than 30 copies of the RFI documents purchased by local and international firms, according to MyHSR chief executive officer Datuk Mohd Nur Ismal Mohamed Kamal.
Malaysia, Singapore call for joint tender for KL-Singapore High Speed Rail assets company
Slated to be completed by end-2026, the 350km Kuala Lumpur-Singapore HSR is expected to cut travel time between the two cities to 90 minutes. PHOTO: FACEBOOK/LAND TRANSPORT AUTHORITY
Both Malaysia's and Singapore's companies behind the Kuala Lumpur-Singapore High Speed Rail (HSR) project have called for a joint tender for an assets company for the bilateral project, the firms said in a statement on Wednesday (Dec 20). The assets company will be responsible for designing, building, financing and maintaining all rolling stock. It will also be responsible for designing, building, financing, operating and maintaining all rail assets such as trackwork, power, signalling and telecommunications for the Kuala Lumpur-Singapore HSR.
Additionally, it will be in charge of coordinating the system's network capacity for operations and maintenance needs. Slated to be completed by end-2026, the 350km Kuala Lumpur-Singapore HSR is expected to cut travel time between the two cities to 90 minutes. Kuala Lumpur and Singapore signed an agreement last December to build and complete the HSR by 2026. The railway line's seven stations in Malaysia are Kuala Lumpur, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri, while the only station in Singapore will be at Jurong East.
Chief executive of MyHSR Corporation, Datuk Mohd Nur Ismal Mohamed Kamal, said the project is "a complex and extensive transport infrastructure project for both countries, which will generate huge socio-economic benefits arising from the increased connectivity and travel efficiencies". "We are delighted with the progress thus far with the submission of the Section 4 Land Acquisition Act completed, ongoing Public Inspection for alignment within Malaysia, recently launched Project Delivery Partner and today's joint tender launch of the Assets Company. We welcome all interested parties to submit their best proposal for the Assets Company tender," he said.
Johor Sultan plans to revive the high-speed rail (HSR) link project with Singapore next year
An aerial view of the Kuala Lumpur-Singapore high speed rail terminus construction site at Jurong East in Singapore. — TODAY file pic
Johor Ruler Sultan Ibrahim Iskandar plans to revive the high-speed rail (HSR) link project with Singapore that has been put on the back-burner.
In an exclusive interview with the Singapore Straits Times, the 17th Yang Di-Pertuan Agong was reported saying that he has some ideas on how to get the project back on track. “I will make it (come back) on,” he was quoted saying,
He was reported saying that the line could be funded through a private finance initiative whereby the government pays the contractor to operate the line on a 30-year lease so that it can recoup its costs, before taking ownership of the HSR. Prime Minister Datuk Seri Anwar Ibrahim's government has said that it is open to reviving the HSR, but it will not fund the 350km line last estimated to cost more than RM100 billion.
Kuala Lumpur–Singapore high-speed rail
The 2018 Malaysian general election resulted in the defeat of Najib Razak, with his successor Mahathir Mohamad initially announcing that the project would be scrapped. Nevertheless, during a visit to Japan on 12 June 2018, Mahathir said that the project would merely be postponed due to high costs. On 5 September 2018, it was announced that the HSR operations would start in January 2031. Malaysia subsequently underwent a second change in government in the aftermath of the 2020 political crisis, with the Perikatan Nasional coalition coming to power and Muhyiddin Yassin becoming prime minister. A further time extension was requested to review the project, with Singapore agreeing to a deadline of end-2020. The two governments subsequently failed to reach an agreement to continue the project and terminated it on 1 January 2021 in a joint statement.
After 2 years of cancellation, the project has reportedly been revived and the Malaysian government is currently seeking for proposals to restart the project. The proposed HSR line is 350 km long and is expected to reduce travel time between Kuala Lumpur and Singapore to 90 minutes. It would start from Bandar Malaysia in Kuala Lumpur and connect to other cities such as Malacca and Seremban along the west coast of West Malaysia en route to Jurong East in Singapore.
KL-Bangkok HSR more attractive and beneficial to Malaysia
The proposal for a high speed rail (HSR) linking Kuala Lumpur and Bangkok is one that is definitely more interesting than the much discussed KL-Singapore connection.
Indeed a KL-Bangkok link is more viable, allowing for the possibility of connecting Bangkok to Vientiane, in Laos, before eventually joining up with an already existing HSR line running from Vientiane to Kunming, in China.
No doubt, a link up with Bangkok, Vientiane, Kunming and beyond will be a major game changer for both the passenger travel sector and freight traffic in Malaysia. It would mean major imports and export between Malaysia, Thailand, Laos and China can be carried on by rail instead of sea, as is currently the case. That would make doing business more cost effective and less time consuming.
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