Malaysia

Tok Pa changes tune on HSR compensation, says Malaysia likely to pay less than RM821 mil

Minister says amount is what city-state has spent thus far on the rail project

Updated 5 years ago · Published on 05 Jan 2021 9:11AM

Tok Pa changes tune on HSR compensation, says Malaysia likely to pay less than RM821 mil
Datuk Seri Mustapa Mohamed is changing his stance on revealing the amount Malaysia must pay in compensation to Singapore over the scrapped HSR project. – File pic, January 6, 2021

KUALA LUMPUR – In less than a day, Datuk Seri Mustapa Mohamed has changed his stance on the compensation reveal of the cancelled Kuala Lumpur-Singapore High-Speed Rail (HSR) project, saying Malaysia is expected to pay Singapore not more than S$270 million (RM821 million).

Just yesterday, the minister in the Prime Minister’s Department (economy) said the compensation to be paid by Malaysia cannot be disclosed as both countries have signed a non-disclosure agreement.

In an interview with Astro Awani last night, Mustapa had assured that the government would reveal the compensation amount owed to Singapore after it was finalised.

“The money used is taxpayers’ money, so the amount will be revealed.

“However, it has not been finalised, so the government will not make any announcements yet.

“It is subject to a confidentiality clause as well.

“I hope Malaysians can understand. I give my assurance that, once the compensation has been finalised, the government will make it known.”

He estimates the compensation should be less than S$270 million.

“The compensation should be lower than what Singapore had spent, which is SG$270 million.

“Singapore’s Transport Minister Ong Ye Kung told Parliament that the figure has several components.

“Some of these costs, such as for consultancy services, infrastructure design, and manpower to deliver the project, are abortive costs if the project does not proceed, but not for land acquisition, as the land value can be recovered,” Ong said yesterday.

Meanwhile, Mustapa said Malaysia is still interested in the HSR project, only that the current economic situation does not permit for it.

“The government is of the opinion that the HSR will bring great benefit to the country but we have to look into saving on costs and capital.” – The Vibes, January 6, 2021

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