Melaka wants RM37 billion bridge to Indonesia

MELAKA -- The government will take into consideration all aspects, including suitability and economic factors, on the proposal by the Melaka government to build a bridge across the Melaka Straits to link Malaysia and Indonesia. [Bernama, 23/12/08]

The Melaka state government is planning to revive a long forgotten proposal to construct the world's longest bridge; linking the ancient state to Indonesia's Sumatra island. Deputy Prime Minister Datuk Seri Najib Razak was responding to Melaka Chief Minister Datuk Seri Mohd Ali Rustam (image) who urged the federal government to build the bridge during the opening of the 9th Malay World Islamic World Convention in Melaka.

Mohd Ali was adamant that such an undertaking could spur economic development on both sides of the bridge and also improve bilateral ties between Malaysia and Indonesia. Najib, however, did not dismiss the possibility of the proposed causeway being built over one of the world's busiest straits - a prospect which could leave Mohd Ali drooling in excitement.

If and when it is constructed, the proposed bridge would span 52km across the Strait of Malacca (Melaka); knocking off America's Lake Pontchartrain Causeway to second place as the world's longest bridge. The project has an estimated cost of RM37 billion but the Chief Minister did not mention whether our Indonesian neighbour would be willing to split the bill.

"I am suggesting that the Economic Planning Unit study the request for the bridge which could be funded through the Private Finance Initiative," he said in his speech at the convention. [Bernama, 23/12/08]

The idea of linking the tiny state of Melaka and Sumatra, Indonesia was first proposed in the early 1990's but was shelved following the 1997 Asian Financial Crisis which saw many Asian economies at the brink of total collapse.

Nonetheless, the 'brilliant' prospect of connecting the Malayan Peninsula and Sumatra may seem far-fetched. Najib was right to suggest that an in-depth study was required before any consideration is given to construct the bridge.

Due to its strategic location, one quarter of the world's traded goods pass through the Strait of Malacca every year. It is estimated that over 50,000 ships sail through the strait annually. Hence, a causeway cutting across the strait would inevitably disrupt shipping traffic and inflict adverse effect on trading activities. Sure, they may suggest a bascule bridge like London's Tower Bridge (image) that swings upwards to allow ships to pass through. But across 52km of water? No way.

The Strait of Malacca is also an international waterway; meaning no country, not Malaysia nor Indonesia has legal jurisdiction over it. Thus, building a bridge adjoining the two countries over international waters would require the bridge builder's to deal with both regional and international maritime policies.

However, the biggest concern lies not in the engineering or legal obstacles in the construction of Mohd's Ali dream bridge but his justifications for Melaka's need to have a bridge of that scale. Does Melaka really need the world's longest bridge across the world's busiest shipping lane?

Mohd Ali may not realise but Malaysia, along with the rest of the world are heading, if not already are in an economic slump. The proposed bridge would cost RM37 billion - an amount anyone with caveman mathematical skills could argue a better use for it. How about better schools and health care for the poor?

The Melaka Chief Minister suggested that the project could be funded by the Private Finance Initiative (PFI). There is reason to be cautious over that statement. The PFI is a controversial method of borrowing money, in which government projects are funded by private investors. The banks who fund PFI projects are repaid, including interests, from the money received from the government over a period of time. Therefore, one of the biggest setbacks of a PFI project is that it is in fact more expensive than a public financed project. The government would also see an increase in its spending liability in the coming years for paying out over PFI contracts.

A PFI project also lacks transparency and in Malaysia's case, the project to link Malaysia and Indonesia could well pose an excellent environment for corruption. This is because contracts issued under the PFI are off-balance sheet and does not show up as part of the national debt statistics.

A bridge across the Strait of Malacca may be a monumental feat of engineering and could, in theory, bring about economical benefits in the long term. But from what has been brought up so far, it seems unwise and impractical to spend all that kind of money just to make one man's dream come true.

One has to brace for the ultimate worst case scenario: Could Mohd Ali's super bridge eventually turn out to be a strait-crossing white elephant built to greet ships caught in a massive maritime traffic jam? You bet it could!