Despite the excitement on both sides of the border for the KL-Singapore high-speed rail link project, Moody’s is taking a cautious view until more details are made available.
Said Christian de Guzman, Vice President-Senior Analyst of Moody’s Investors Service Singapore Pte Ltd, “It’s creating a lot of buzz, but we prefer to be cautious about this.”
He said that a lot of details about the project are still unknown, such as where the hub for the rail link would be in Singapore, which could influence the success of the project.
Christian also cited the uncertainty of the upcoming election in Malaysia, saying that no one knows if there would be a shift in government later this year. He added that policy certainty is important, and as long as investors are assured that policies will not change despite a potential change in the government, there should not be a problem.
When asked about the impact of the project, Christian said that there would definitely be a boost to tourism and general linkages, but it would depend on the pricing. He said that Malaysians would be able to go to Orchard Road, and Singaporeans to Legoland, through the high-speed rail link.
Apart from that, Christian also said that with rising costs of living in Singapore, improved transportation links could make it easier for Singaporeans to live in Johor.
