Former Finance Minister Lim Guan Eng and former Damansara MP Tony Pua have defended the Pakatan Harapan (PH) government’s handling of the LRT3 project, insisting their administration saved Malaysian taxpayers RM9.72 billion without compromising the rail line’s functionality.
In a joint statement on Thursday, the pair stressed that the project, now known as the Shah Alam LRT Line, was never cancelled, suspended or abandoned during PH’s administration between 2018 and 2020. They also expressed their highest respect and appreciation for the views of the Sultan of Selangor, Sultan Sharafuddin Idris Shah, regarding the completion of the project.
According to Lim and Tony, the previous Barisan Nasional (BN) administration led by former Prime Minister Datuk Seri Najib Razak had initially approved RM9 billion for the project in 2015, alongside a RM10 billion government guarantee to secure financing. However, by March 2018, Prasarana had reportedly awarded work package contracts worth RM15.2 billion, pushing the projected total cost, including land acquisition, consultancy fees, project delivery costs and financing, to RM31.65 billion.
They explained that after PH took office in May 2018, construction continued without interruption while the government worked with project delivery partner MRCB-George Kent to review and rationalise costs. With the project only about nine per cent complete at the time, an independent engineering consultant was appointed to assess the development and recommend measures to improve accountability and reduce unnecessary spending.
The review resulted in the project’s estimated cost being reduced by 47 per cent, from RM31.65 billion to RM16.63 billion, generating savings of RM15.02 billion. Lim and Tony said the government prioritised practicality over extravagance, arguing there was no need to build MRT-sized stations for an LRT system.
Among the measures introduced were reducing the rolling stock order from 42 six-car train sets to 22 three-car train sets based on passenger demand forecasts up to 2035 approved by the former Land Public Transport Commission (SPAD). Five stations with initially low projected ridership were also postponed, with provisions made to allow them to be constructed when future demand justified their inclusion.
They noted that the five stations have since been reinstated, with the government awarding RM5.3 billion in second-phase contracts covering the additional stations, more train sets and other upgrades. As a result, the project’s total cost increased to RM21.93 billion, which they said remains RM9.72 billion lower than the RM31.65 billion estimate approved before PH took office.
Lim and Tony also explained that the project’s completion date was extended from 2020 to 2024 because the original deadline was unrealistic given construction progress of only around nine per cent. They added that extending the timeline eliminated costly acceleration payments to contractors.
The duo further revealed that PH replaced the Project Delivery Partner (PDP) model with a fixed-price contract. They argued the previous model rewarded contractors based on a percentage of the project’s total cost, creating incentives for project costs to increase. The fixed-price model, they said, prevented further cost overruns and provided greater financial certainty for the government.
They maintained that the savings were achieved without reducing the LRT3 line’s capacity or public function. Instead, they said the lower project cost would not only save taxpayers RM9.72 billion but could also reduce government interest payments by as much as RM10 billion over the next 25 to 30 years, freeing up public funds for other welfare and development initiatives.
Their statement comes after Sultan Sharafuddin Idris Shah reminded all parties not to claim sole credit for the successful completion of LRT3, stressing that the project was made possible through the continued planning, commitment and cooperation of multiple administrations for the benefit of the people of Selangor. The Sultan also noted that Lim and Tony had reduced the project’s investment cost during their time in government after classifying it as a mega project, even though its primary objective was to improve public transportation for the rakyat.
