Najib: Is Azmin implying that S’pore is hiding something about HSR?
“From the Government’s dubious answer as to why the cost of the HSR project has doubled to RM110bil, it shows that it is common for them to double the cost of Barisan-initiated projects such as HSR, ECRL and LRT3 and claim that Barisan has hidden real costs”
(The Star) – Former prime minister Datuk Seri Najib Tun Razak is not pleased with Economic Affairs Minister Datuk Seri Azmin Ali’s response to his question on the High Speed Rail (HSR).
In a statement on his Facebook page on Wednesday (July 18), Najib said Azmin’s answer to him and Ayer Hitam MP Datuk Seri Wee Ka Siong on the issue was “disappointing”.
The HSR is a 350km railway linking Kuala Lumpur and Singapore and is expected to start operations from 2026.
According to Najib, the HSR project was done via an international open tender called jointly by the Malaysian and Singapore governments.
Najib explained that the tender also requires bidders to offer financing and financing packages.
The HSR project is very competitive, he said, adding that bidders will usually be supported by their respective governments: “For that, the financing package is also very competitive where interest at zero rate or 0.1% is not unusual.”
Najib cited the recent example of a Japanese company that won the HSR project in India with a financing package of 0.1% interest over a 50-year period with a 15-year moratorium (or delayed payment).
“This high-profile Malaysia-Singapore HSR project draws attention from aggressive bidders from around the world,” he said.
That is why it is disappointing to receive an answer from the Pakatan Harapan government regarding their claims that the cost of HSR is actually RM110bil, Najib added, stating that it is double the estimated RM55bil and RM70bil projected by Barisan Nasional and the Singapore government.
“When queried, Azmin was only able to answer that the RM110bil cost was their estimate and that it covered hidden costs that were not elaborated, even though the tender to be decided by the two countries had not been closed, the costs had yet to be finalised and the financing package was still unknown,” said Najib.
“Are you saying that the Singapore Government is concealing this ‘hidden cost’?” he queried.
He further questioned why the Pakatan Harapan government did not disclose the beneficial economic impact of the HSR project, as well as lost employment opportunities if the project is cancelled.
Najib also chided Azmin for choosing to make a joke instead of answering the question.
“This is not a good start for Parliament because this big project needs a complete answer, as it affects millions of people, hundreds of jobs, international affairs and Malaysia’s future economic flow,” he warned.
“From the Government’s dubious answer as to why the cost of the HSR project has doubled to RM110bil, it shows that it is common for them to double the cost of Barisan-initiated projects such as HSR, ECRL and LRT3 and claim that Barisan has hidden real costs,” said Najib.
He said they will then claim to be able to reduce the cost of the project to half, even though the new costs are “higher than Barisan’s original cost”.
“On the same issue, there were Finance Ministry representatives today claiming that I knew the cost of LRT3 was at a towering RM32bil, and so I asked them to show the document where I had approved an additional RM22bil bailout from the Prasarana letter dated March 30, 2018.
“Show the proof. In fact, it was just an application that the Barisan government never agreed to,” said Najib.
“It seems that the Pakatan Harapan Government is still strongly politicking instead of ensuring economic continuity for the future of the country,” he concluded.
