Can Penang LRT project
withstand Malaysia’s
political shifts, asks
consultant
Wan Agyl Wan Hassan says changes to the ruling coalition and leadership have historically impacted major projects.
Wan Agyl Wan Hassan, the founder of transport think tank My Mobility Vision, said that while the government is often bound by legal obligations in awarded contracts, history has shown a tendency to take such commitments lightly.
“Malaysia’s track record with infrastructure projects shows that legal commitments alone are not always enough to guarantee continuity,” he told FMT, pointing to the High-Speed Rail (HSR) and East Coast Rail Link (ECRL) as examples of projects that were either shelved or renegotiated after binding contracts were sealed.
The HSR, which was expected to cut down travel time between Kuala Lumpur and Singapore to just 90 minutes, was cancelled when Perikatan Nasional came to power in 2020.
Two years earlier, the Pakatan Harapan government halted the ECRL project after it took office following the 2018 general election despite construction having commenced the previous year. Work resumed in 2019, with the cost subsequently reduced by RM11 billion following multiple contract renegotiations.
Similarly, Wan Agyl said the suggestion that a project was safe if it was in an advanced stage of development was debatable, pointing out that infrastructure projects like the MRT3 and HSR had achieved significant progress when they were brought to a halt.
“The key issue here isn’t how far along the project is but whether the process so far has been handled efficiently and transparently. Without strong governance, even advanced projects can face setbacks if priorities change.”
Wan Agyl was commenting on an assurance given by economy minister Rafizi Ramli that the upcoming Penang LRT project is unlikely to be cancelled even if a new government comes into power.
Rafizi said the project is moving towards the stage where contracts will be awarded, making it too costly to scrap.
Wan Agyl said that while political stability would ensure a project’s continuity, Malaysia’s political landscape has become “unpredictable”. He said frequent changes to the ruling coalition and leadership in recent years has impacted a number of major projects.
“Does the Penang LRT have bipartisan support to protect it from future political interference? Without this, even the most promising projects can become targets for political opposition.”
Wan Agyl called for a critical examination of the potential consequences of cancelling the LRT project in Penang.
Beyond job losses and reduced investor confidence, the impact on urban development and environmental goals could be significant, he said, adding that Penang’s sustainability efforts may falter.
“These are real risks that need to be addressed with data and transparency rather than assumptions.”
However, Consilz Tan, a fellow with think tank Center for Market Education, believes the Penang LRT project is better insulated due to the fact that it is within the state government’s control.
Tan said a new government would be unlikely to shelve the project due to the costs involved. It was previously reported that the project would cost over RM10.5 billion.
“I hope political sentiments won’t lead to the project being called off,” she said, adding that infrastructure and transportation were important in raising living standards and attracting investments.
The key watershed is crossed for Penang LRT when existing land is cleared for the project and actual concrete is poured.
ReplyDeleteRight now ...nothing....
Penalty compensation clauses payable to contractors, Prime and Subsidiary are substantial once physical construction has begun. Plus the eyesore of an actual abandoned project.
When originally Najib took over as Prime Minister, he intended to kill the 2nd Penang Bridge project. He had no intention to benefit the DAP-held Penang Governmment . However, by that time, substantial physical work had already been done, and it would have snowballed into an international dispute with the China main contractor, and China Government behind that - which Najib had no appetite for.
That is why it is imperative that the Penang State Government clear the decks for actual physical work to start. As I understand it, the key steps are currently with the State Government -land acqusition , and site handover without encumbrances
Sleepy Chow MUST get his act together.
There is a HUGE difference in momentum and sunk investment between a Paper Project and one that has substantial concrete poured.
Right Now Penang LRT is still a Paper Project, even though it is approved , Budgeted and at planning stage.
Penang is at the centre of Malaysia's plan to leverage on the industries of 2024 -High end microprocessors , AI data centers, Green energy.
ReplyDeleteA key advantage is the pre-existing supporting industries and technic workforce.
The LRT is key to enable Penang to keep growing that base - avoid gridlock and upgrade its transport infrastructure.