KUALA LUMPUR: Malaysia is laying the tracks for a transformative future in regional connectivity, with growing momentum behind the Pan-Asian Railway Network and renewed interest in the long-discussed Kuala Lumpur–Singapore high-speed rail (HSR).

Wan Agyl, chief executive officer (CEO) and founder of MY Mobility Vision, said Malaysia's commitment to the Pan-Asian Railway Network reflects a broader push for sustainable, transparent, and investor-driven infrastructure development.

"Our upgraded west coast rail system positions Malaysia as a vital link in the Kunming–Singapore corridor. This isn't just about connectivity; it's about integrating Malaysia into a fast-evolving regional supply chain and strengthening our logistics role in Asean," Wan told Business Times.

"In short, we're laying down the foundation for long-term integration while focusing now on what's practical and impactful."

Transport Minister Anthony Loke, fresh from Chinese President Xi Jinping's state visit, said that Xi had underscored the importance of realising the cross-border rail link.

This will enable trains from Malaysia to travel directly to China, reaching Kunming, and thereon connect to the extensive Chinese rail network, Loke said on Friday after attending the Railway Assets Corporation appreciation event and open day.

He added that this opens up new trade corridors into western China, including Inner Mongolia and Xinjiang — regions with large Muslim populations.

Wan Agyl described President Xi's visit as a "milestone" in Malaysia–China ties, resulting in 31 signed memoranda of understanding (MoUs).

One key MoU — between Malaysia's Ministry of Transport and China's National Development and Reform Commission — opens the door for deeper collaboration in rail planning, technology, and operations, he said.

"While no funding was announced for the HSR, the MoU creates a structured channel for Malaysian companies to collaborate with Chinese state-owned enterprises, not just in tech and engineering, but also in workforce training and digital systems," Wan noted.

Rather than relying on sovereign debt, Malaysia is embracing design-finance-build-operate-transfer models that align with its fiscal policy and development goals.

"As Malaysia prepares to chair Asean in 2025, building strategic infrastructure with trusted partners like China enhances our regional standing as a transport and logistics hub," he added.

Samuel Tan, CEO and founder of Olive Tree Property Consultants, said the HSR should be seen through the wider lens of the Pan-Asian Railway Network — a strategic opportunity neither Malaysia nor China can afford to overlook.

"Once completed, it will create a seamless rail link from Singapore through Malaysia, across Indochina, and onwards to China and even Europe. The connectivity potential is immense," he said.

HSR: Still on Track, But Privately Powered

In early 2025, MyHSR Corp completed an extensive evaluation of seven concept proposals from Malaysian and international consortiums. The Ministry of Transport is now finalising the framework for a potential public-private model — which will be submitted to Cabinet for approval.

Should the Cabinet greenlight the structure, shortlisted firms will be invited to submit full proposals during the Request for Proposal (RFP) phase.

Tan said the HSR project represents an opportunity to redefine Malaysia's economic trajectory and economic position in Asean.

He said the HSR is poised to be a game-changer, driving RM21 billion in gross domestic product growth for Malaysia and Singapore and generating over 111,000 jobs by 2060.

With broader economic benefits potentially reaching RM19 trillion, the HSR promises to reshape regional connectivity, creating one of the largest economic hubs globally.

Tan said the HSR will link two of Southeast Asia's most prominent economic powerhouses—Kuala Lumpur and Singapore—which currently dominate the world's busiest international route, with 4.9 million seats sold annually.

"As demand for connectivity between these cities intensifies, the rail link will foster a new economic zone, enhancing trade, investment, and collaboration," he said.

Malaysia and Singapore's bilateral trade reached US$78.59 billion (RM360.12 billion) in 2024, up 6.7 per cent from 2023, and with the HSR, the flow of goods between the two nations will grow even further, fuelling economic expansion, Tan said.

"Successful HSR models in China and Indonesia, such as China's extensive network and Indonesia's first HSR line, set a strong precedent for the project's potential success," Tan said.

Tan said amid a sluggish global economy, attracting investment will be no easy feat.

"China may prove to be a key partner," he said.

Tan added that a reconfigured HSR route could reduce costs while still delivering widespread benefits. "Extending the line beyond Kuala Lumpur towards the northern region would boost land values and create long-term economic uplift.

"Similar models in China, Indonesia, Thailand, and Laos have shown how HSR can catalyse investment and regional GDP growth. For instance, the Jakarta–Bandung HSR is projected to attract RM370 million in industrial investments and lift GDP in the Java Economic Corridor by 2.2 per cent.

Tan said reviving the earlier proposal for the HSR to run through Forest City in Johor also makes commercial sense.

As part of the newly declared Forest City–Special Financial Zone and Johor–Singapore SEZ, the area is poised to become a key transport hub, linking the HSR with the RTS Link and the double-tracked electrified rail system.

"This integration could draw investors and fast-track Forest City's transformation," Tan said.

Looking ahead to Malaysia's Asean chairmanship in 2025, the HSR could position the country as a regional leader in economic, social, and cultural integration. Beyond trade, it would enhance tourism, education, and professional services across Southeast Asia, Tan said.

Shifting From Prestige to Practicality

Meanwhile, Wan Agyl highlighted a key shift in Malaysia's approach — from flashy mega-projects to practical, inclusive infrastructure planning.

Projects like the Kuala Lumpur–Singapore HSR are not scrapped, he clarified, but have been repositioned.

Now viewed as premium infrastructure with long-term strategic value, the HSR will only proceed if privately funded.

"Instead of being treated as a state-led prestige project, the HSR is being evaluated for its real economic impact. This allows the government to focus on completing projects that deliver broader social and economic returns.

"One of those priorities is improving the country's domestic rail backbone, especially along the west coast. Projects like the Gemas–Johor Bahru Electrified Double Track (EDTP), the ETS upgrades, and the integration of KTM Komuter services are being fast-tracked to enhance connectivity for millions of everyday Malaysians," he said.

These domestic enhancements benefit millions of Malaysians and align with the government's priority to deliver inclusive growth without straining public finances.

Wan Agyl said the government has been consistent in reiterating that Malaysia must prioritise spending on immediate public needs such as healthcare, education, flood mitigation, and existing infrastructure completion.

"The HSR is not off the table, but it's important to clarify that it hasn't been approved yet either. The government has revived discussions around the project, but only under one key condition: it must be entirely financed and led by the private sector," Wan Agyl said.