KUALA LUMPUR – The government has paid more than RM320 million as compensation to the Singaporean government following the former's decision to terminate the bilateral agreement on the Kuala Lumpur-Singapore High-Speed Rail (HSR) project on December 31, last year.
A joint statement by Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed and Singapore's Transport Minister Ong Ye Kung today said the payment has been made for costs incurred for the development of the HSR project, and in relation to the extension of the suspension of the HSR project.
"The two countries reached an amicable agreement on the amount following a verification process by the government of Malaysia. This amount represents a full and final settlement in relation to the termination of the bilateral agreement.
"Both countries remain committed to maintaining good relations and fostering close cooperation for the mutual benefit of the peoples of the two countries," the statement read.
The much-anticipated HSR project was called off after both countries failed to reach an agreement. This is after the project’s suspension period lapsed on December 31, 2020.
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 Malaysian economy. – The Vibes, March 29, 2021
