The cancellation of Kuala Lumpur-Singapore High Speed rail or HSR, trans-Sabah gas pipeline project, and East Coast Rail Line is capable of helping out the government to reduce the burden by over RM300 billion as said by Mahathir Mohamad, the Malaysian Prime Minister.
According to him, the projects are exceptionally costly to be funded by the government. Previously, if they had to execute any plans, they made sure that they have enough money. In case they did not have the money, they would determine the debt level and how much they can repaid from the return on investment. This is the best way.
Mahathir says that the principle wasn’t practiced by the previous government. He accuses the government of incurring heavy debts for carrying out mega infrastructure project without even considering their ability to repay it. The present government just scrapped projects after assuring that doing so is going to hurt the Malaysians.
He has also stated that the ECRL project is an example where the money is being borrowed with the condition that the foreign company is going to be given the contract. According to him, the foreign workers who have brought in while the tools and equipment was made by the foreign country. Thus, they haven’t got anything.
If they are to cancel the projects, the victims are actually the foreign company’s workers and not theirs. Thus, they have cancelled as they will not have to pay large debts. Turning the topic to the 3rd national car project, Dr. Mahathir believes that it is going to spark the interest of the Malaysians in manufacturing and engineering.
A car has about 4000 parts. If they have to make the car, they need to have an idea about the design, testing, quality, and parts. They have to learn these.