The legendary leader of Malaysia Dr. Mahathir Mohammed (Known as Dr.M) is a no-nonsense man with an eyesight of an eagle to pick up enemy business strategy of inserting Trojan Horse. He found one in the touted KL-Singapore High Speed Rail Project, planned in 2016. He succeeded in aborting it in his classical Dr. M style. Details below:
This mega high speed railway project with an estimated cost of US$ seven billion was in the drawing board for some time before it was formally initialled by the former Prime Minister Najib Razack with his Singaporean counterpart in 2016. Major pluses of this project include cutting down road travel time from Singapore to Kuala Lampur of more than four hours to just about one and half hours. At astounding max speed at 320 kmph, the journey covers a distance of 360 km with halts at some seven stations. Everything appeared well set for its progress.
The year 2018 saw the surprise return of Dr.M once again as PM. After whetting thru the project details he scrapped it stating it is too expensive for the one trillion ringgit debt ridden Malaysia to carry out. In his inimical style he later changed his decision as deferment of the project till may 2020. He allowed negotiation to go to and forth buying time for him and in January 2021 abandoned the project altogether.
Dr.M never stated publicly the real reason for the scrapping of the project. It was later found after Dr. M stepped down as the PM that he has traced a Trojan Horse, business strategy implanted in the form of “Asset Company” as one of the cardinal conditions. This company according to articles of the agreement meant to own & operate railway systems, networks, procurement of supplies and maintenance of the project during its pendency. Instead of normal joint venture protocol of 50:50 partnership this company would operate as independent party and be beyond the perusal of Malaysian authorities. To put it differently, operate under Singaporean control.
In fact it is an attempt by Singapore to create equity in the Malaysian Federal territory disregarding the sovereignty of the country. Hence, Malaysia requested the removal of the asset company clause as it is obnoxious to the Malaysian sovereignty. Singapore refused and the project saw its sunset. As provided by the agreement at any time parties abort Singapore had the right to demand compensation which she did. Whereas Singapore claimed that she has incurred around Singapore dollars 270 million in preparation of this aborted project, Malaysia settled the issue by paying Singapore dollar 102 million to close the files.
This amount though large tantamount to a small payment in protecting Malaysian sovereignty. Dr. M as legendary he always is, checkmated Singapore business strategy of Trojan Horse, in a classic move of using queen & castle in right combination.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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