THE compensation figure for the cancellation of the Kuala Lumpur-Singapore High Speed Rail (HSR) project cannot be disclosed due to a confidentiality clause in the bilateral agreement between Malaysia and Singapore, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed.
In a Facebook statement, Mustapa said that the amount of compensation has not been confirmed.
“We are waiting for the cost details from Singapore. Once received, it will be scrutinised before being confirmed. My team and I will discuss with Singapore to get an agreement to share information on the amount of compensation after it is finalised.
On whether the project will be replaced with a KL-Johor Bahru HSR, he said the Government will conduct a detailed study to determine the next direction.
The project was postponed in May 2018 after the 14th General Election, following a review of several key Government investment commitments.
Mustapa said that the proposed new project structure would save the Government from providing guarantees amounting to RM60 bil for the next 30 years.
“Apart from that, we have also suggested some other changes including station alignment and design, which will all reduce spending by about 30%.
“All of the above suggestions can reduce costs and at the same time maintain project benefits,” he added.
He also explained that several intensive discussions at the technical and ministerial levels were held over the past six months with both Malaysia and Singapore’s prime ministers holding a video conference on Dec 2, 2020.
“Unfortunately, we failed to reach an agreement,” he added.
Although the bilateral agreement has expired, Mustapa said that the two countries will continue to work closely together to strengthen cross-border integration. – Jan 4, 2021
