KUALA LUMPUR, Dec 16 ― The government is likely to make an announcement on the Kuala Lumpur-Singapore High-Speed Rail (HSR) by year-end, said RHB Research.

It said the expectation was based on its engagement with some industry players.

“Based on our checks with some infrastructure industry players, the government is likely to make an announcement on the HSR project soon. Media reports quoting a source stated that the government may go ahead with the project but without Singapore, and is ready to pay a compensation of RM300 million to Singapore,” RHB Research said in a note today.

It noted that the track was now proposed to end in Bukit Chagar, Johor Baru (JB), which is the connection to the JB-Singapore Rapid Transit System (RTS).


“There will still be two tracks ― direct and transit lines from Kuala Lumpur to JB, and the stations in between Kuala Lumpur and JB will be the same as the previous proposal ie. Bandar Malaysia, Seremban, Ayer Keroh/Jasin, Muar/Pagoh, and Batu Pahat.

“The Putrajaya station may be located at the KL International Airport (KLIA) before reaching Bandar Malaysia.

“Previously, we were hopeful for a seamless connection from Bandar Malaysia to Singapore, given the ease of travel, as well as the potential boost the project can bring to the Malaysian real estate,” it added.


RHB Research said the number of travellers between Kuala Lumpur and Singapore would increase significantly over the longer run, given that Singapore is a renowned international financial hub.

“However, if the HSR is to end in Bukit Chagar, JB, we think the spillover effect will not be that material, but will still be overall positive, especially for the stations in between the two terminals. Local business and weekend travellers from Singapore will be key contributors to the ridership,” it noted.

While it cannot confirm until the government makes its announcement, RHB Research said selective property stocks would likely see trading opportunities ahead.

Assuming the previous proposed alignment is unchanged, the major beneficiaries are Sime Darby Property due to its massive landbank in Labu and Pagoh, IOI Properties with landbank in Ayer Keroh and Jasin, and Matrix Concepts with landbank near KLIA and Seremban.

“Companies with large landbank in Iskandar may also benefit over the long term due to the materialisation of the Rapid Transit System, which will be completed earlier in 2025-2026 compared to the HSR,” said RHB Research. ― Bernama