Malaysia rail infrastructure projects hit the buffers

Spending vast sums on infrastructure projects that countries arguably cannot afford and may not need is a risky business, as the actions of Malaysia’s new government shows.

Malaysia's new government has lost little time fulfilling election pledges by canning a major rail project and casting a pall over others, sending shockwaves through the local construction industry and reminding investors of the risks attached to infrastructure investing.

In a setback for China, which is spearheading a major infrastructure drive across the region with its Belt and Road Initiative, Prime Minister Mohamad Mahathir this week cancelled the high-speed rail HSR link between Kuala Lumpur and Singapore.

The reason Overly high costs and poor value for money, which at a time when total government debt amounts to more than RM1 trillion $250 billion,...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222