Malaysia said it hopes to price round trip tickets at under RM400 (S$148) for the proposed RM 40 billion high speed rail line linking Singapore and Kuala Lumpur.
Land Public Transport Commission chief executive Mohd Nur Ismal Mohamed Kamal said different fares will be targeted at all segments, including business travellers and budget leisure passengers.
We foresee a much lower average price to make the HSR project feasible. It would cost less than RM200 for a single trip. Although the return on investment will take a longer time, the operator will have several options to recoup its investment in the project," Mohd Nur Ismal said as quoted in the New Straits Times newspaper.
"The operating company will be allowed to take on yield management similar to how an airline operates. This is one area we are looking at and it will not be strictly regulated like our LRT and train services."
Mohd Nur Ismal said he expected the HSR to boost tourism in both countries.
"It would allow tourists to visit both Malaysia and Singapore as one package," he said.
The government has earmarked an area known as Bandar Malaysia, 3 km from the central business district for the HSR terminal.
Singapore will build its passenger terminal on the site of the Jurong Country Club in Jurong East district.
