KUALA LUMPUR (Oct 14): Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said the MRT3 model has to be carefully looked at.
During a session at InvestMalaysia 2021 on Thursday titled: “12th Malaysia Plan — Opportunities and Challenges”, which was moderated by Bursa Malaysia chairman Tan Sri Abdul Wahid Omar, Mustapa said there is a need for the MRT3 circle line but the model needs to be carefully looked at.
“Proposals have been submitted to the government and there have been a few presentations to the government on the MRT3 project,” he shared when asked by Abdul Wahid on the updates of the mega infrastructure project.
Mustapa, who is also commonly known as Tok Pa, further shared that there have been proposals for the project to be done on a moderate basis given the current financial situation of the country.
“For us the government, what is important is the amount of money that we have to put in to enable the project to be successful, whereas from a promoter's point of view, they would want lots of help from the government in terms of land acquisition, support loans and government guarantees.
“Going forward, we are going to try to minimise that as much as possible,” he explained.
In terms of the high-speed rail (HSR), Mustapa shared that a study has been conducted and it is ready for submission to the Cabinet on alternatives — a domestic HSR from Kuala Lumpur to Iskandar Puteri — following the lapse in bilateral agreement between Singapore and Malaysia.
He added that when the financial situation of the country improves and when the government has managed to boost its coffers, they can then revisit these projects.
Mustapa also touched on the Public Private Partnership (PPP) 3.0 model, which is currently a work in progress.
“The PPP 3.0 aims to reduce the financial burden on the government, it is a work in progress. A concept paper has been prepared and has been submitted to the cabinet, it is approved, the model is roughly as follows.
“We want to reduce the financial burden on the government after the completion of a project in terms of lease charges. The preference is for a 'user pays' model as to not result in financial burden to the government and where the government might assist with a one-off statutory amount,” he said.
However, he emphasised that it is just conceptual at this juncture, and hopes that it will be considered by the government.
The government is expected to reveal the new PPP 3.0 model in the middle of next year.