Tuesday, 8 November 2016
ECRL: Loyar Art Harun don't play economist
Azhar Harun should stop pretending to be an economist and stick with being a lawyer.
He had tried to calculate the fair of how much a passenger in the ECRL would cost in order to pay back the China loan.
I would then ask him, what is the return on the RM23 billion 2200km complete toll free Pan-Borneo highway?
Based on his calculations, it would be zero and hence this project would be a complete waste of money.
He conveniently ignore that economic multiplier also means that there will be taxes that will be collected from activity in that area.
The land price escalation along the railway, the new businesses that are set up due to linking the two ports together, the increased income of the residents around there - which will include GST or income tax collection.
That is why infrastructure projects are important as the benefits go beyond the actual line.
Perhaps Art Harun should also calculate the per passenger fare return of the RM46 billion Penang Masterplan project, which the Penang EXCO already said they will borrow a big portion of it, that will cost each 1.6 million person in Penang RM28,750 per person and how the Penang govt expects to make back the money to pay for that project.