JOHOR BARU (THE STAR/ASIA NEWS NETWORK) - The Malaysian government's decision to cancel the High Speed Rail (HSR) will be hard on property developers who have invested in land near the proposed stations, says Johor Real Estate and Housing Developers Association (Rehda) branch chairman Datuk Steve Chong Yoon On.
He said that the move to scrap the 350km HSR, estimated to cost RM110 billion (S$37 billion), was a definite "setback" for developers, but they are supportive of the initiative for the greater good of the country.
"Yes, there will be an impact for developers and some people who bought properties that were supposed to be close to the stations.
"But everyone has to look at the bigger picture of saving our country's economy," he said.
"The project is now scrapped, but who knows - when our economy is much healthier in the future, the HSR project might be reconsidered," he told The Star.
Mr Chong added that interest in properties near the planned station sites might cool down, but he did not expect prices to drop drastically.
Prime Minister Tun Dr Mahathir Mohamad said on Monday (May 28) that Malaysia is pulling out of the HSR deal with Singapore. He had labelled it an "unnecessary project" and will not earn us a single cent".