High speed rail as catalyst for regional growth

-

The decision over the High Speed Rail (HSR) project linking Kuala Lumpur, Selangor, Negeri Sembilan, Melaka, and Johor to Singapore has been deferred to the end of the year. This will be the last extension for Malaysia and Singapore to finalise technicalities before the project's launch.[1]

HSR system is not only a faster and more convenient mode of medium and long-distance travel but a catalyst for urban development and trade growth, as seen in several countries.

The construction of the South Europe Atlantic HSR that began in 2012 and completed in 2017 has created 14,000 jobs, generated €1.6 billion (RM7.6 billion) in production, with added value of €755 million (RM3.6 billion) in the three regions.[2]

After the installation of the HSR line that connects Cologne and Frankfurt since 2001, the GDP of the region had increased 8.5% faster than if the infrastructure had not been built. Provinces in China with HSR have observed 25% more revenues than provinces without HSR.[3]

Due to the immediate and long-term benefits, the United Kingdom has just launched their second HSR project known as HS2, connecting London to West Midlands, the largest infrastructure project in Europe.[4]

In southeast Asia, the two countries currently developing HSR are Thailand and Indonesia.

Thailand’s HSR will link three of their airports, serves as the core infrastructure development for their Eastern Economic Corridor, and an initiative aims to lift the country out of the middle-income trap.[5]

Indonesia’s HSR that connects Bandung and Jakarta is estimated to provide 40,000 jobs and anticipated to begin operation in 2021.[6]

These two immediate neighbours of Malaysia are now constructing the most advanced rail system despite having lower GDP per capita. Malaysia recorded US$10,254 GDP per capita in 2017, higher than Thailand (US$6,578) and Indonesia (US$3,893).[7] Should we be surprised if Thailand and Indonesia overtake Malaysia in the next one or two decades?

The HSR planned to connect the five states in Malaysia to Singapore has a huge role to play in the country’s progress. Not only does it serve the southern states but also be the first phase of a larger pan-Asian HSR network in the peninsula, as envisioned by the Kunming-Singapore rail line.

Seeing the HSR as a mere transport mode is underplaying its potential as a catalyst for the country’s and region’s growth.

References
[1] https://www.theedgemarkets.com/article/malaysia-singapore-resume-discussions-highspeed-rail-project-soon-%E2%80%94-azmin

[2] https://link.springer.com/article/10.1007/s12544-017-0233-0#ref-CR24

[3] https://link.springer.com/article/10.1007/s12544-017-0233-0#ref-CR24

[4] https://www.bbc.com/news/uk-16473296

[5] https://asia.nikkei.com/Business/Transportation/Thailand-puts-high-speed-rail-project-on-track-with-land-pledge

[6] https://www.railwaygazette.com/in-depth/indonesia-making-progress-at-high-speed/55841.article

[7] https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=TH-ID-MY

Popular posts from this blog

BRT expert sweet-talking Penang to install bus system?

-
Image
It was reported that Yoga Adiwinarto, country director of the Institute for Transportation and Development Policy (ITDP) in Jakarta had recommended the Bus Rapid Transit (BRT) system for Penang in a presentation organised by Think City yesterday. The ITDP specialises in BRT and their institutional mission is to promote the bus system around the world in that their “specific area of expertise is the bus rapid transit (BRT) and we work to spread knowledge about BRT and provide high-level technical assistance to cities pursuing BRT projects in the US and abroad.” Urban planning expert, Diego Silva Ardila has observed that think-tanks like ITDP “have focused on BRT systems as the only plausible solution for urban transport in the developing world, and have not seriously and rigorously analysed the possibilities that rail-based systems have [...]” Ardila further noted that “the think-tanks and their claims have been deemed biased by the fact that they represented the interests of
Read more

Jobs don't drop from the sky #7

-
Image
Our youth unemployment rate has been rising every year in the past 5 years, from 11% in 2016 to 11.72% last year. Are jobs being produced as fast as our youths grow up? Without jobs, what's our youths' future? Without jobs, how to start a family? Without jobs, how to care for aging parents? These are the questions that Hafiz discussed with me. Hafiz is a graduate with a degree in finance. Most of his cohorts have left Penang to work in KL. "Kawan-kawan struggle cari kerja di Penang, dan memang banyak yang pi KL," he said. Although Hafiz wanted to join them, he as the eldest among his siblings had stay back to care for the family. Unable to get a suitable permanent job, Hafiz ended up as a contract worker for several years. When the Penang South Reclamation (PSR) had job openings, Hafiz applied and got his first stable permanent job. After working for 10 months, Hafiz has saved enough to get married. He and his wife are expecting their first child now. Just before Raya
Read more

Jobs don't drop from the sky #5

-
Image
I will continue to write about real Penangites whose life has been changed for the better because of Penang South Reclamation (PSR). These Penangites are not big-name politicians, their story seldom gets highlighted. Nonetheless, they are Penangites who can now earn a decent living for their family due to the project. Therefore, I think their story deserved to be told. Pak Idris and his grandson, Adam are such Penangites. Idris, 66 years old, has worked as a fisherman for over five decades. Adam, now 23, had been helping his grandpa since his teens. Adam shared about an incident when he was 18 years old working in the sea with his grandpa. That day they met with a thunderstorm. Huge waves were hitting their boat. Idris used all his strength to steer the boat to safety, against the strong currents until the vessel almost broke into two. “Tok perlu lawan sampai bot terangkat tinggi, hampir patah dua." Adam said. “Masa tu, kalau hanyut di laut, pun hanyut lah,” Idris added. Fortunate
Read more