KL-Singapore high-speed rail: How profitable can it be?

Population density in Kuala Lumpur may not be high enough to make the KL-S'pore high-speed rail profitable. Instead profitability will depend on the extent of regional economic integration and how urban clusters unfold within Asean.

Commuters at KL Sentral railway station in Kuala Lumpur, one of the terminals for the Kuala Lumpur-Singapore high-speed rail project. The project is under review following the election of a new government in Putrajaya led by Malaysian Prime Minister
Commuters at KL Sentral railway station in Kuala Lumpur, one of the terminals for the Kuala Lumpur-Singapore high-speed rail project. The project is under review following the election of a new government in Putrajaya led by Malaysian Prime Minister Mahathir Mohamad. ST PHOTO: MARK CHEONG
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The Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) project is under review following the election of a new government in Putrajaya led by Malaysian Prime Minister Mahathir Mohamad. Whatever the outcome, there is one issue that needs to be looked at more closely: profitability.

The project's profitability will depend on the extent of regional economic integration - the free movement of people, labour, goods and capital across national borders - as well as how urban agglomeration unfolds within Asean.

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A version of this article appeared in the print edition of The Straits Times on August 01, 2018, with the headline KL-Singapore high-speed rail: How profitable can it be?. Subscribe