PETALING JAYA: The Pakatan Harapan Government's decision to scrap the multi-billion ringgit High-Speed Rail (HSR) project with Singapore will adversely impact the country's economic growth, claimed Datuk Seri Abdul Rahman Dahlan.

The Umno strategic communications spokesman said the cancellation of the HSR project will see Malaysia lose an estimated RM209bil in gross national income (GNI) contribution and 70,000 potential jobs opportunities.

He quoted a study by the research body Institute of Developing Economies, Japan External Trade Organisation (IDE-JETRO), which found that once the HSR is in operation, it would deliver a US$1bil (RM4bil) economic gain to Malaysia annually.

“The abandonment of HSR would also mean that the value of 1MDB's Bandar Malaysia project which was to be the terminus station of the HSR would be substantially decreased - diminishing the ability of 1MDB to repay its debt,” he said in a Facebook post on Tuesday (May 29).

On Monday (May 28), Prime Minister Tun Dr Mahahir Mohamad was quoted as saying during a press conference that the HSR project will cost Malaysia RM110bil, adding that the project “willl not earn us a single cent”.

Abdul Rahman, who is a former minister in the Prime Minister's Department, labelled Dr Mahathir’s remarks as too simplistic, and questioned the 92-year-old's claims that the project is set to cost Malaysia RM110bil.

“This differs greatly from the range of RM50bil to RM70bil cost that the governments of Singapore and Malaysia had budgeted earlier this year.

“Did the Pakatan Government take into the net economic and spill-over effects beyond the cost of the HSR project when arriving at this hasty decision to cancel?” Abdul Rahman questioned.

In pointing out that the cancellation of the HSR will disappoint foreign investors, Abdul Rahman claimed that the Pakatan Government should not be short-sighted in making such important decisions.

“It is obviously clear that the spill-over benefits are so huge that it will be a wasted opportunity if we don’t proceed with the project now.

“Should this project be re-started in future years, the cost would only increase and the debt burden will increase manifold which is totally against PH Government’s plan to reduce the national debt,” he added.