KUALA LUMPUR – The much-anticipated Kuala Lumpur-Singapore High-Speed Rail (HSR) project has been called off after both countries failed to reach an agreement.
This is after the project’s suspension period lapsed yesterday.
A joint statement by Prime Minister Tan Sri Muhyiddin Yassin and his Singaporean counterpart Lee Hsien Loong said both governments could not come to an agreement over several changes proposed by Malaysia, despite discussions.
The changes were proposed in light of the impact of the Covid-19 pandemic on the economy.
“Both countries will abide by their respective obligations, and will now proceed with the necessary actions, resulting from this termination of the HSR agreement,” it said.
“We remain committed to maintain good bilateral relations and cooperate closely in various fields, including strengthening the connectivity between two countries.”
In a separate statement, Singapore’s Transport Ministry said Malaysia has to pay compensation for costs already incurred for allowing the bilateral agreement to be terminated.
Prior to today’s termination, reports had surfaced of claims that Malaysia would continue the project without Singapore’s involvement.
Sources had said the HSR would instead see the line ending in Johor Baru.
As a result, it is said Malaysia would have to pay RM300 million in compensation to its neighbour.
The 350km rail line was to have significantly cut travel time between Kuala Lumpur and Singapore to 90 minutes, with the project's bilateral agreement signed in December 2016 under the administration of then prime minister Datuk Seri Najib Razak.
The line was proposed to connect Bandar Malaysia in downtown Kuala Lumpur to a terminal in Jurong East Singapore, and was initially slated for completion in 2026.
In May 2018, following the change in Malaysia's government, the project was temporarily suspended for two years before being extended again until yesterday. – The Vibes, January 1, 2021
