'SINGAPORE: The Kuala Lumpur-Singapore High-Speed Rail (HSR) project will be discontinued after the HSR agreement lapsed on Dec 31, 2020, the Prime Ministers of both countries said in a joint statement on Friday morning (Jan 1).
Both Singapore and Malaysia will now proceed with the "necessary actions".
In the statement, Singapore's Prime Minister Lee Hsien Loong and Malaysian Prime Minister Muhyiddin Yassin said: "The Government of Malaysia and the Government of Singapore wish to provide an update on the Kuala Lumpur-Singapore HSR Project in view of the expiry of the suspension period of the HSR Project on Dec 31, 2020. ...
"Malaysia
has since allowed the HSR Bilateral Agreement to be terminated, and has
to compensate Singapore for costs already incurred by Singapore in
fulfilling its obligations under the HSR BA in accordance with the
Parties’ agreement," MOT said.' CNA
Why is Malaysia so happy to call this off and willing to pay compensation to the tune of $50m or more? Johore UMNO is not happy as it would affect business in the state. To reconnect Johore to Singapore through other means when the HSR would do the job more effectively raise queries as to the logic behind this move.
HSR could be the link to BRI, meaning goods from Singapore could tack along and benefit from the rail connection to Asia, China and Europe. Without this link, Singapore is left out in the cold. Singapore's key advantage as a transportation hub is connectivity. The cancelling of HSR to Singapore is basically to disconnect Singapore. This is a strategic move by Malaysia to cut off Singapore from the land bridge of BRI and Singapore has no answer to it.
If China and Malaysia were to jointly develop the ports in Klang or Malacca, the strategic role played by Singapore in sea transportation would be greatly undermined. With Gwadar and ports in Myanmar and Sri Lanka growing in importance, the bits and pieces in this maritime chess board are going to take away a lot of business from Singapore.
Singapore's strategic thinking or outdated strategic plans to plug on to the American power play is turning precarious and likely to turn bad as China continue to rise in economic power. The Americans also have no answer to this Chinese challenge as their only card left to play is military might, not economic. While the Americans continue with their destabilising the world strategy of creating wars everywhere to make nation states becoming dysfunctional, they totally neglected in developing their economic power and allowed China to rule in this area.
As long as the Americans are unable to start a military war with China or Russia, American military might and hardware are going to be very expensive and costly waste products in this competition for world dominance. China is going to call the shot with its manufacturing power and huge consumer market and its control of marine and land transportation in Asia, Europe, Africa and SE Asia. The Americans have no chips left to play and can only hope to create wars to upset the Chinese economic bandwagon.
Singapore has very little time to change its economic strategy, maybe it is already too late. The die has been cast and Singapore has been fixed for good.
