South Korea and Malaysia have similar experiences of undergoing rapid economic growth and quickly overcoming the 1997 Asian financial crisis based on the strength of export-driven policy.
The sharing of similar economic development processes and experiences has enabled South Korea and Malaysia to better understand each other and this mutual understanding can be the grounds for close cooperation in all areas for stronger economic partnership. In fact, the two countries confirmed invigoration of bilateral cooperation via the second wave of the Look East Policy.
Furthermore, South Korea and Malaysia also share a very similar background of adopting the high-speed rail (HSR). The background to the HSR initiative in South Korea goes back to the 1980s, when the country was suffering from serious road congestion caused by a surge in car ownership and increased logistics costs. This also created a problem of severe overconcentration and overcrowding in the Seoul metropolitan region. South Korea needed a second growth engine to efficiently address these structural problems.
Malaysia is a higher income country among the Southeast Asian countries and it has accomplished steady economic growth in spite of the recent global economic slowdown. Malaysia’s decision to adopt HSR is very timely as it is expected to push the country’s economic growth into a higher gear.
South Korea’s bold decision to launch HSR and continued research and development have established HSR as the chosen mode of transportation for long-distance travels.
The HSR also created an immense ripple effect on the local economy by inducing increased people-to-people and commodities exchange among the regions.
Along the way, South Korea succeeded in localising HSR technologies, which are being utilised in current HSR operations and this has made it possible for South Korea to come in first in the International Union of Railways’ (UIC) ranking of safety and punctuality.
Since its operation in 2004, South Korea has been recording zero casualties and maintaining highly reliable and safe HSR systems. Most recently, South Korea secured the world-class rolling stock technology by successfully developing the High-Speed Electric Multiple Unit (HEMU430), which reaches a top speed of 430 kph.
South Korea also has the most advanced and the latest technologies and know-how in HSR construction, accumulated through domestic projects where works can be very tough given South Korea’s territory is predominantly mountainous terrain. South Korea’s HSR tunnels are world class, with the smallest cross section and shortest track centres.
None of these achievements were possible without countless trials and errors in almost every stage from contractor selection, environmental issues to regional conflicts, and all of these have enabled South Korea to gain competitiveness in HSR.
To ensure smooth and successful implementation of the Kuala Lumpur-Singapore HSR, South Korea wishes to share its hard-earned and valuable experiences with Malaysia and to that end, South Korea has formed a consortium for the project, consisting of leading private companies and public agencies with the necessary expertise.
Members include Korea Rail Network Authority (KRNA), with vast experience in HSR construction; Korea Railroad Corporation (Korail), with efficient HSR operational performance; world renowned Samsung Electronics; South Korea’s biggest telecommunications company Korea Telecom; and, major rolling stock manufacturer Hyundai Rotem. With such membership, the South Korean Consortium for the Kuala Lumpur-Singapore HSR project can be relied on for the highest performance and to create a remarkable synergy for project execution.
In a HSR project, it is essential to reduce the construction cost as well as the operation cost (Opex). In order to cut down on Opex, it is vital to localise the manufacturing technology for core parts and South Korea would willingly transfer the necessary technologies to Malaysia as these key technologies belong to the public sector. A good example of technology transfer that can be looked at is the case of Hyundai Rotem. Hyundai Rotem, a company under Hyundai Motors Group, is a rolling stock manufacturer which has exported 14,000 trains to 36 countries around the world.
It is an internationally recognised manufacturer with overseas corporations established in five countries — including Malaysia, the United States and Turkey — and 17 international branch offices. In 2006, Hyundai Rotem, together with the Turkish government, set up Eurotem as a joint enterprise, and Eurotem has become a best practice model in the transfer and localisation of manufacturing technologies. Eurotem, with production starting in 2007, has a capacity to produce 100 trains per year and is playing its role in strengthening the growth of Turkey’s railway industry.
In case South Korea wins the HSR contract, South Korea is planning to implement various training programmes to help Malaysia develop human resources in the railway sector. Korail and KRNA’s UIC-certified training institutions will provide practical training programmes related to construction, operation and maintenance of HSR.
In addition, Korea Railroad Research Institute and Korea National University of Transportation will be offering undergraduate and postgraduate academic programmes aimed at educating Malaysians to implement and operate railway projects using their own technologies.
South Korea is proud of projects carried out by South Korean companies in Malaysia in the past. These projects include the Petronas Twin Towers, the emblem of Kuala Lumpur, and the Penang Bridge, the second longest bridge in Malaysia.
Aside from infrastructure projects, following the popularity of K-wave, Malaysian’s interest in South Korea is rising and the South Korean people’s interest in Malaysia is increasing at the same time. At this juncture, if the two countries cooperate via the Kuala Lumpur-Singapore HSR project, it will serve as an excellent opportunity for South Korea and Malaysia to move beyond mere cooperative relations to partners for future joint growth.
South Korea looks forward to becoming Malaysia’s partner in sustainable economic growth in many more years to come through the utilisation of South Korea’s experiences in efficient and effective introduction of HSR to Malaysia and, thereby, contributing to the advancement of Malaysia’s railway industry.
The future will be the era of environmentally-friendly transportation. The ultimate goal of the Kuala Lumpur-Singapore HSR goes beyond simple physical linkage between Malaysia and Singapore. The Kuala Lumpur-Singapore HSR will transcend national boundaries to bring together the neighbouring Asian countries and, in this sense, function as Asia’s “new bridge”. South Korea longs to become Malaysia’s partner and take the first step towards future transportation revolution.
Dr Yu Hyun-Seok is ambassador of South Korea