This article first appeared in The Edge Financial Daily on September 26, 2017

KUALA LUMPUR: Malaysia will lead the rapid transit system (RTS) project between Johor Baru and Woodlands North in Singapore, Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan said, with plans to call for open tenders for construction in the country in 2018.

The RTS’ cost will also be finalised by the end of the year once its design is agreed upon by the operating company (OpCo), he added.

Abdul Rahman also said there has been no decision on the shareholding of the OpCo that will design, build, finance, operate and maintain, as well as renew the RTS link operating assets such as trains, tracks and systems. “However, the OpCo would not be held on a 50:50 ratio as it would impede the decision-making process.

“There could be a deadlock in decisions or agreements [made]if it held a 50:50 ratio. We are approaching this issue in a ‘brotherly’ manner where both parties have agreed that one of them has a slight majority, so it is easier to carry out the RTS moving forward,” he told reporters yesterday after witnessing the signing of a memorandum of understanding (MoU) between the Malaysian government-linked corporation Prasarana Malaysia Bhd and Singapore-owned SMRT Corp Ltd to set up an OpCo to run the RTS.

“Of course, both countries agree that neither party can carry out the project on its own or impose its will. However, we don’t expect any issues.

“At the end of the day, there are mechanisms to overcome the issues at [the] ministerial level. If it is still not resolved at our level, then our prime ministers would be able to resolve the problem,” Abdul Rahman said.

Asked if debt-laden Prasarana is able to operate the link, its chief executive officer Datuk Seri Azmi Abdul Aziz said the government will issue a guarantee for it to raise the funds via the market. “On us being a going concern, we are going through a transformation programme now. What is important is how we can get all public transportation infrastructure up, so it can serve the public and reduce unnecessary congestion that would choke the city.

“That is something we have to look at in ensuring that public transportation infrastructure will be off the ground as soon as possible, so the people can enjoy the government’s investments [in it],” Azmi added.

With a debt of RM18 billion in 2015 and a higher figure projected for 2016, Prasarana currently operates three light rail transit systems, a monorail line and the mass rail transit line 1. It also runs the Al Mashaer Al Mugaddassah Metro Southern Line and the Makkah Shadow Operator in Saudi Arabia.

Abdul Rahman also said there are alternatives for the Johor-side alignment — an issue of contention with the Sultan of Johor Sultan Ibrahim Sultan Iskandar, but in Singapore, the alignment has been set. “I met with [the] Sultan of Johor last week and some of his perceptions were based on third party views. We gave him our story, and took heed of his views on the alignment. I don’t see any other issue, and assured him that I will brief him from time to time,” he said.

He noted the design includes a proposal for a high bridge, low bridge, perpendicular, diagonal or even parallel to the Causeway. “We will finalise it by the end of the year. We are mobilising double the resources to finalise the technical details. We don’t see any objections from the Singapore side.” 

Abdul Rahman also said while Bukit Chagar in Johor Baru has been identified as the site for the station, there has been no decision on how to get there as there are different routes. The construction of the 4km-long link over the Tebrau channel is expected to begin next year following a round of tenders for construction, and is projected to be operational in 2024.

When completed, the rail system is expected to draw some 10,000 commuters daily each way, and reduce traffic congestion.