Singapore wanted 50-50 of RTS operations but Malaysia won 52% controlJanuary 17, 2018
Malaysia and Singapore carried out negotiations on which country would have a controlling stake of their joint venture operating company that will run the JB-Singapore Rapid Transit System (RTS) between Kuala Lumpur and Singapore.
Singapore wanted a 50-50 split but Malaysia believed there should be a dominant party to make decision-making easier.
In the end, Malaysia won the battle, gaining a 52% control of the operations in the company that will run the affairs of the RTS project.
“We impressed upon the Singaporeans that it’s quite difficult to move forward as a company especially when we have to make some major decisions if the equity is 50-50.
“So we proposed 52-48 on the basis that we have sacrificed the KTM train service (for this project) – we have to dismantle and stop the service of KTM – and also for the purpose of moving forward in terms of making business decisions,” said Minister Rahman Dahlan.
“And I thank the negotiators from Singapore, they’ve agreed that Malaysia should hold 52 per cent and Singapore holds 48 per cent in terms of equity,” he said, as quoted by the Channel News Asia website.
“But also I have assured that we will in no way trample upon the minority interest. Whatever issues that we have we will have to sort it out on the basis of friendship and for the nation.”
When completed by 2024, the RTS Link will be able to carry up to 10,000 passengers in each direction every hour. This translates to an additional capacity of 60,000 users crossing the Causeway during peak hours.