It was probably politics that killed the proposed bullet train linking Kuala Lumpur and Singapore, analysts said, and not cost considerations as claimed by Malaysia.
'The project if carried out would suddenly bring Singapore to our doorstep,' said Murugesu Pathmanaban, political scientist and former academic. 'Probably the discomfort of having Singapore at our doorstep is a key reason against the rail link.'
The M$8 billion (HK$19.86 billion) proposal by Yeoh Tiong Lay Corp (YTL), a largely family-owned local conglomerate, was under consideration for five years but officially shelved on Tuesday - with officials blaming high costs as the main factor.
Francis Yeoh, YTL's managing director, first tried to convince former prime minister Mahathir Mohamad but was not successful and turned to his successor, Abdullah Badawi, who was initially keen but failed to make a firm decision.
Analysts say the political cost was a key factor. YTL was going to source the project's financing, while the government would help only with the acquisition of land.
'A key reason always has been the political implication of having Singapore so close to Malaysia,' said political analyst James Wong. 'It is a case of too close for comfort.'