Benefits of the Singapore KL High Speed Rail

Singapore KL High Speed Rail

The recent Singapore KL High Speed Rail project is expected to impact the Asian nations on a positive note. The project Memorandum of Understanding that was recently signed has already ignited expectations for the project that has a decade to be completed (2026).

Although the high-speed rail will bring about economic growth to both nations, it will also spur the creation of jobs, increase in tourism, cultural diversity, and real estate opportunities. These are some of the acclaimed benefits, and more will emerge as time passes on. But, what are the direct impact of the project on Singapore real estate and property industry?

4 benefits of Singapore KL High Speed Rail on property sector

The first advantage of the high-speed rail project is likely to be regarding skills transfer. Singapore does not have high-speed rail technology experience, hence; this project will pave the way for an opportunity to build expertise. It will develop manpower in the sector and set a foundation for the development of the technology.

Industry experts say property and construction industry will also benefit directly. This is because a lot of new properties and residential areas will spring up from the nodes of this rail project. The project will pave a platform for foreign investors to invest in Singapore and Malaysia on high and low-income earners. This is because the high-speed train will connect the rich Singaporeans with weak and medium, earning Malaysians in a given route.

Tourism attractions and expansion is another area of benefit to Singapore. Although this is also applicable to Malaysia, it is more beneficial to many Singaporean tourist centers. Many new tourist havens will spring up along the line of the rail thereby creating more business and growth for the construction and property sector. Many people foreign nationals will now love to invest in the nodal towns in Malaysia close to Singapore for cheaper reasons and the market opportunity that is rising.

Another benefit is the multiplier effect that the project will bring. Many Businesses resident in Malaysia will now be able to come to Singapore to have their headquarters and operations while having their factories and warehouses in the nodal places in Malaysia. Other international investors will do likewise and have their businesses stationed in Singapore as well. This will increase the number of residential apartments that will be needed as well the value of these apartments.

4 economic benefits of Singapore KL High Speed Rail to Malaysia

There will be a rise in the property value of lands in the nodal towns along the Singapore-Kuala Lumpur HSR. There will be increased land and ownership demand in the Johor, Klang Valley and all the nodal stops along the HSR route. This will bring about many new housing estates along the rail route that will be like a spill over from the Singaporean property market. This opportunity is open to all property investors, Malaysians, and big foreign players.

Another essential benefit of the Singapore-Kuala Lumpur High-Speed Rail to Malaysia is the direct job opportunities it will present. From the construction till the operations, many Malaysians will be directly involved in various capacity and manpower. Also, This will result to the upspringing of business opportunities around Jurong East terminus in diverse sectors including tourism, hospitality, retail, logistics and much more.

Many other professionals can work in Singapore while living in Malaysia. The HSR project will reduce the hassles involved with traveling to and from Singapore hence; many people (especially low-income professionals) working in Singapore will prefer to live in the less expensive apartments a few kilometers into Malaysia than the highbrow neighborhoods of Singapore. Other people in this category are retirees that will be looking at easing their expenses and overhead while they sustain a healthy lifestyle.

Finally, business activities will begin to overflow into Malaysia from Singapore. Shopping malls and other business properties will start to spring up in other towns in places close to the train routes in Malaysia, especially, Johor. This will increase the growth rate of Johor and the property sector too. Many Singaporeans already live in Johor but, more will begin to own and develop resources.

Other impacts of the High-Speed Rail

There will be an enlarged market base for Changi and Singapore International Airport. This will occur because many business people will soon begin to fly to Singapore en route Malaysia, once the high-speed rail project is complete in 2016. This situation will increase the population of air travelers flying to and from Changi Airport. This will further increase the number of international flights and their destinations. Changi airport will experience explosion and expansion. However, this will not happen without a ripple effect.

On the flip side of this expansion possibility for Changi Airport in Singapore, the resultant effect of the completed high-speed rail on AirAsia will initially be negative.  With the convenience of a 90-minute train ride from Singapore to Kuala Lumpur, more business people will prefer to fly through Changi airport hence; reducing the number of air travelers using AirAsia. This effect may eventually be reversed with innovation and planning within the next decade before the completion of the Singapore-Kuala Lumpur high-speed rail construction.

According to Prime Minister Lee Hsien Loong “The macroeconomic benefits include the convenience of being close to one another, ninety minutes away — a very quick, very affordable, and very easy way to get in touch to make friends and do business, to be one integrated economy. This means opportunities for businesses, tourists and investors to get both destinations for the price of one.

There are many spin-off benefits regarding development potential around the terminus in Malaysia and also in Singapore. In Malaysia, they are building it in Bandar Malaysia, while in Singapore, we are doing it in the Jurong Lake District. There will be various indirect benefits to businesses and investors which can take advantage of this convenience to flourish and grow in both territories.”

PHOTO CREDIT: LTA