High Speed Train in Malaysia

Topics: Kuala Lumpur, Johor Bahru, Johor Pages: 21 (6518 words) Published: May 27, 2013

Siti Azzah Abdul Razak

Student ID No. : 2012599121

As a property economist, you have been instructed by your CEO to examine the potential impact of the high-speed rail (HSR) linking Kuala Lumpur with Singapore. Prepare a report discussing the potential impacts of the proposed high-speed rail (HSR) on the property markets in Malaysia.

Discuss also the possible property investment that may arise.


The subject of this report is to examine the potential impact of the high-speed rail (HSR) linking Kuala Lumpur with Singapore on property markets in Malaysia. Also to discuss the possible property investment opportunities that may arise along the high-speed rail (HSR).

Under The Economic Transformation Plan, there has been a realisation in recent years that the country is, for various reasons, caught in a “middle-income trap” and to continue at the current pace of socio-economic development, it would not be able to realise Malaysia’s Vision 2020 of becoming a developed nation by the year 2020. The Malaysian economy which grew between 8% and 9% annually prior to the Asian Financial Crisis, has since 1997, grown annually at only between 4 and 5%.

With this in view, the present government has begun to chart an ambitious and new economic direction and framework for Malaysia, and whilst it still includes Vision 2020 as the target for reaching developed nation status by the year 2020, the new elements in the proposed acceleration of socio-economic development includes the New Economic Model or NEM, the 10th Malaysia Plan or 10MP (2011- 2015), the 1Malaysia Government Transformation Plan or GTP, and the 1Malaysia Economic Transformation Programme or ETP (A Roadmap for Malaysia). The NEM was a result of the establishment of an independent National Economic Advisory Council (NEAC) to develop recommendation on the design of a new economic model. The Council’s report, released in April 2010, provided a diagnosis of the challenges and opportunities facing the Malaysian economy and recommends eight strategic reform initiatives. Much of this thinking has been built into the 10th Malaysia Plan and the Economic Transformation Programme.

The 10MP outlines the Government’s development plan for the next five years. It focuses on unleashing economic growth, promoting socio-economic development, developing and retaining talent, building an environment that enhances the quality of life and transforming government. It identifies 12 National Key Economic Areas (NKEAs).

The GTP is a commitment by the Government to better delivery of goods and services to the Malaysian public. It involves National Key Results Areas (NKRA’s) such as reducing crime, fighting corruption, improving student outcomes, raising living standards of low-income households, improving rural basic infrastructure, improving urban public transport and addressing cost of living.

The ETP is a comprehensive effort that will transform Malaysia into a high- income nation by 2020. It will lift Malaysia’s gross national income (GNI) per capita from USD6,700 or RM23,700 in 2009 to more than USD15,000 or RM48,000 in 2020, propelling the nation to the level of other high-income nations. This GNI growth of 6 per cent per annum will allow Malaysia to achieve the targets set under Vision 2020.

The starting point of the ETP will be the implementation of concrete changes in specific sectors and areas of the economy. Labs were established for each of the 12 NKEAs to determine specific initiatives and projects that would drive economic transformation. The 12 labs consisted of the private sector and the civil service and were facilitated by Performance Management Delivery Unit (PEMANDU). An NKEA is defined as a driver of economic activity that has the potential to directly and materially contribute a quantifiable amount of economic growth to the Malaysian economy.

Of the 12 NKEAs,...
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