KUALA LUMPUR — Malaysian Resources Corporation Bhd (MRCB) has confirmed its withdrawal from a consortium led by Berjaya Corporation Bhd-that is bidding for the proposed Kuala Lumpur-Singapore high speed rail (HSR) project.
In a share market filing, MRCB said it issued a notice today to Berjaya Rail Sdn Bhd, a subsidiary of Berjaya Land Bhd, to terminate a teaming agreement, which was signed on December 15, 2023 for the purpose of joining the Berjaya HSR Consortium.
“Pursuant to Clause 12.1.2 of the teaming agreement, the termination shall take effect upon the expiry of a 30-day period from the notice of termination,” MRCB told Bursa Malaysia today.
Earlier this morning, it was reported that MRCB’s shares slipped to a four-month low in early trade, with its shares falling 2.5 sen or 5% to 49 sen, valuing the group at RM2.2 billion, with 10.6 million shares done.
In announcing MRCB’s decision to pull out from the consortium, Berjaya in a statement yesterday said that MRCB’s move to exit the consortium was so that it could “pursue other strategic opportunities”.
“The consortium, which includes Berjaya Rail, Keretapi Tanah Melayu Bhd (KTM), IJM Corporation Bhd and its technical partners such as Deutsche Bahn, Hitachi Rail and Hyundai Rotem, will be further strengthened to better align with the evolving needs of the project and to meet the government’s expectations,” it added.
Meanwhile, Berjaya’s founder and advisor Tan Sri Vincent Tan said that the group remains steadfast in its mission to deliver a world-class HSR system that will transform regional connectivity and enhance economic development for Malaysia.
In March, it was reported that the consortium was among three shortlisted for the HSR project, with the YTL Construction Sdn Bhd-SIPP Rail Sdn Bhd consortium and a Chinese consortium said to be led by state-owned China Railway Construction making up the list.
Berjaya Land holds a majority stake in Berjaya Rail, while the remaining shares are owned by the company’s chairman, Tunku Tun Aminah Sultan Ibrahim, who is also the Yang di-Pertuan’s daughter.
The HSR project, which was formally agreed between Malaysia and Singapore in February 2013, was initially slated to be completed by 2026, with the 350-km rail line designed to link several key destinations, namely Kuala Lumpur, Putrajaya, Negri Sembilan, Melaka and Johor.
However, during Pakatan Harapan’s first stint as government in 2018, the project faced criticism for its high costs and financial impacts, leading to work on the project being put on hold in September that year.
The project was formally terminated in 2021 after both countries failed to reach an agreement on proposed changes, with Malaysia made to compensate Singapore S$102.8 million for incurred costs.
With Malaysian authorities now considering whether to approve the project against, a request-for-information exercise for the HSR project conducted by MyHSR Corp Sdn Bhd, the government’s delivery vehicle for the project, concluded earlier this year in January.
Transport Minister Anthony Loke earlier this week reportedly said that the cabinet is set to make a policy decision on the project by end-December or early January next year, prior to restarting talks with Singapore. – December 19, 2024