THE multi-billion-dollar high-speed rail (HSR) link project to link Kuala Lumpur and Singapore has been scrapped after the two countries failed to reach an agreement on some changes to the project.
A joint statement today revealed that the changes were sought by Malaysia due to the pandemic’s economic impact and the Government will have to compensate Singapore for costs already incurred.
However, the countries did not state how much Malaysia would have to pay.
The announcement came just after a Dec 31 deadline for the second and final extension of the suspension of the project, which was first mooted a decade ago and given the green light in 2013.
The project was first suspended in 2018 shortly after former prime minister Mahathir Mohamad came to power with a pledge to tighten finances and review major deals made by his predecessor Najib Razak.
In May, the suspension was extended another six months to allow discussion of changes to the project.
The following month saw the Southeast Asian neighbours had agreed to put the development on hold again amid a discussion around costs.
“In light of the impact of COVID-19 pandemic on the Malaysian economy, the Government had proposed several changes to the HSR project,” according to the joint statement by Prime Minister Muhyiddin Yassin and Prime Minister Lee Hsien Loong. “Both Governments had conducted several discussions with regard to these changes and had not been able to reach an agreement.”
“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, released by Muhyiddin’s office.
The 350km high-speed rail link was to supposed to start in 2026 and has an estimated cost of around RM70 bil. – Jan 1, 2021
