KUALA LUMPUR – The compensation to be paid by Malaysia over the terminated Kuala Lumpur-Singapore High-Speed Rail (HSR) cannot be disclosed as both countries have signed a non-disclosure agreement.
Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, in a Facebook post today, said the issue has been raised by many parties.
“We are waiting for the details on the cost from Singapore, and once we receive them, we will study them. What can be claimed has already been agreed.
“Even then, the amount of compensation cannot be revealed because under the bilateral agreement, both countries are tied to a non-disclosure agreement.
“However, my team and I will discuss this with our Singaporean counterpart to see if we can agree to share some details regarding the amount of compensation to be paid once it has been finalised. Therefore, any figures pertaining to the compensation by any parties are purely speculation.”
At this moment, he said, the sum has not been finalised.
He also said the compensation is not punitive, but to repay the project costs that have been borne by Singapore.
The HSR project was terminated on January 1 after its suspension period lapsed the day before.
A joint statement by Prime Minister Tan Sri Muhyiddin Yassin and his Singaporean counterpart, Lee Hsien Loong, said both governments were unable to come to an agreement over several changes proposed by Malaysia, despite discussions.
The changes were mooted 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,” said the statement.
In a separate statement, Singapore’s Transport Ministry said Malaysia has to pay compensation for costs already incurred, for allowing the bilateral deal to be terminated.
The 350km rail line would have significantly cut travel time between here and Singapore to 90 minutes, with the deal signed in December 2016 under the administration of then prime minister Datuk Seri Najib Razak.
The line, proposed to connect Bandar Malaysia in downtown Kuala Lumpur to a terminal in Singapore’s Jurong East, was initially slated for completion in 2026.
In May 2018, following the change in Malaysia’s government, the project was suspended for two years before it was extended again, until its cancellation. – The Vibes, January 4, 2021
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