Malaysian property tycoon Lim Kang Hoo’s unit bags S$626 million RTS Link construction contract

MALAYSIAN property tycoon Lim Kang Hoo’s construction unit Ekovest Construction has won a RM1.98 billion (S$626 million) Rapid Transit System (RTS) Link contract to build the high speed railway linking Johor Bahru to Singapore.

Ekovest Construction, a wholly-owned subsidiary of Ekovest – in which Lim has a 30.8 per cent stake – has been appointed by Malaysia Rapid Transit System as the collaborative partner to Adil Permata, the main contractor of the RTS project.

Under the contract, Ekovest Construction will be the project’s engineering, procurement and construction contractor.

The RTS Link project consists of a railway shuttle link of around 4 km – 2.7 km in Malaysia and 1.3 km in Singapore – with stations and customs, immigration and quarantine complexes in Bukit Chagar and Johor Bahru in Malaysia, as well as Woodlands in Singapore.

As at June 2022, the RTS Link project was 17 per cent complete. When completed by end-2026, it is expected to transport 10,000 commuters per hour in each direction.

In an email interview with The Business Times, Lim said this was a valuable opportunity for Ekovest as it takes a role in this game-changing infrastructure development, which could create multiplier effects for both economies.

He noted that it is crucial to improve the land route connectivity between Singapore and Malaysia to boost economic growth and future collaboration between both countries.

Pre-pandemic, over 415,000 people crossed the Johor Bahru-Singapore land borders via the Causeway and the Second Link every day.

“With the RTS Link, it will certainly ease the heavy traffic in Causeway and the Second Link, and hence shorten the commute time for those who need to cross the border for work and leisure,” said Lim. “The improved efficiency will be beneficial for both Malaysia and Singapore in terms of economy and bilateral relationship as well.”

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He added that the project will be the catalyst to further development of Johor Bahru and surrounding areas, thus unlocking property value in southern Johor and the central business district areas in Johor Bahru.

The RTS Link project was mooted in 2010, but was suspended in 2019 at the request of Malaysia for a review of its scope, structure and cost. The project resumed in July 2020.

As at May 2021, the rail link’s operator RTS Operations – a joint venture between Singapore rail operator SMRT and Malaysian public transport firm Prasarana – has awarded 9 system work contracts worth about S$321.7 million.