Update 4 Jan 2021: Project terminated after agreement lapses, both countries to proceed with 'necessary actions'
The concept design for Malacca station along the KL-Singapore HSR. (Photo: MyHSR)
The Kuala Lumpur-Singapore High-Speed Rail (HSR) project will be discontinued after the HSR agreement lapsed on Dec 31, 2020, the Prime Ministers of both countries said in a joint statement on Friday morning (Jan 1). Both Singapore and Malaysia will now proceed with the "necessary actions".
In the statement, Singapore's Prime Minister Lee Hsien Loong and Malaysian Prime Minister Muhyiddin Yassin said: "The Government of Malaysia and the Government of Singapore wish to provide an update on the Kuala Lumpur-Singapore HSR Project in view of the expiry of the suspension period of the HSR Project on Dec 31, 2020.
"In light of the impact of COVID-19 pandemic on the Malaysian economy, the Government of Malaysia had proposed several changes to the HSR Project. Both Governments had conducted several discussions with regard to these changes and had not been able to reach an agreement. Therefore, the HSR Agreement had lapsed on Dec 31, 2020," the leaders said.
The Prime Minister was asked on his reaction to Singapore's Foreign Minister who on Monday (Jul 9) said that the republic was waiting for Malaysia's official response to its diplomatic note seeking clarification on the HSR project.
Dr Mahathir said that Malaysia has to be careful when making an announcement as certain parties & the financial market could react negatively.
"As far as the Singapore Government is concerned, we have not given them full notice, but they know what we want to do," said Dr Mahathir.
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Mahathir says Singapore knows what Malaysia wants to do with HSR project
Prime Minister Mahathir Mohamad on Tuesday (Jul 10) said the government has not yet officially informed Singapore of its decision on the High-Speed Rail (HSR) project, but the city state knows what Malaysia wants to do with it.
Tun Dr Mahathir said the Malaysian government has to exercise caution when making a decision & announcing it.
“We have not given them (Singapore) full notice yet but they know what we want to do,” he told a news conference.
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Singapore ‘knows what we want to do’ about High-Speed Rail: Mahathir
Malaysian PM Mahathir Mohamad said the country has not yet given Singapore "full notice" of its intentions for the planned Kuala Lumpur-Singapore High-Speed Rail (HSR) but that its neighbour knew what it wanted to do.
"As far as the Singapore government is concerned, we have not given them full notice yet, but they know what we want to do," he said at a news conference on Tuesday (Jul 10).
Dr Mahathir was responding to a question about Singapore saying Malaysia had yet to give formal notice on axing the project. According to Singapore, comments had only been made to media.
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Mahathir says Singapore knows what Malaysia wants to do with HSR project
Malaysian PM Mahathir Mohamad on Tuesday said the government has not yet officially informed Singapore of its decision on the High-Speed Rail. "We have not given them full notice yet but they know what we want to do," he said.
"Decisions are not so easily made. When we make a decision and announce it, the market reacts negatively. The market apparently likes to be told lies about how good everything is so they will give you good marks. But if we tell them we have discovered a lot of wrongdoings, they react by running away with the money, they stop investing and all that. But in fact what we are doing now is to ensure that this country is financially run properly."
Speaking in Parliament on Monday, Singapore Transport Minister Khaw Boon Wan said Singapore sent a diplomatic note to Malaysia on Jun 1 "to seek immediate clarification on Malaysia's position".
related: Singapore has spent S$250m so far on high-speed rail
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Singapore very smart & should know what Malaysia wants
Tun Dr Mahathir Mohamad says the Government has not officially informed Singapore over the status of the High-Speed Rail (HSR) project.
The Prime Minister was asked on his reaction to Singapore's Foreign Minister who on Monday (July 9) said that the republic was waiting for Malaysia's official response to its diplomatic note seeking clarification on the HSR project.
Dr Mahathir said that Malaysia has to be careful when making an announcement as certain parties and the financial market could react negatively.
"As far as the Singapore Government is concerned, we have not given them full notice, but they know what we want to do," said Dr Mahathir.
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Clauses allow either Malaysia or Singapore to opt out from HSR: Malaysian minister
There are clauses that allow either Malaysia or Singapore to opt out of the high-speed rail (HSR) project, said Datuk Seri Mohamed Azmin Ali.
The Economic Affairs Minister said the Attorney General's Chambers (AGC) has examined the bilateral agreement between both nations. Azmin said according to the feedback from the AGC, the matter must be resolved based on the laws, which also involves bilateral negotiations.
"We are looking at all the available options. The bilateral agreement on the HSR provides for either party to cancel the project. This however, is subjected to the terms & conditions of the agreement.
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Fate of High-Speed Rail rests on Malaysia, Singapore discussion: Azmin Ali
The fate of the mega KL-Singapore High-Speed Rail (HSR) project hinges on the outcome of the discussion between the two countries, said Malaysia's Economic Affairs Minister Mohamed Azmin Ali on Wed (Jul 18).
“I’m not saying that it is a terrible project. Certainly, any infrastructure projects will benefit both Malaysia and Singapore,” he told reporters at the parliament lobby.
Mr Azmin said he would be meeting Singapore's Minister for Transport Khaw Boon Wan soon to find the best solution in the best interest of both countries. “Well, I don’t wish to disclose the options at this moment. Let both parties meet and discuss all options available before us,” he added.
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Former Malaysian PM Najib questions economic impact of cancelling high-speed rail project
Former Malaysian PM speaking at the Dewan Rakyat. (Screengrab: Sumisha Naidu)
Former Malaysian PM Najib Razak questioned the country's economic affairs minster Azmin Ali on Wednesday (Jul 18) about the economic impact of cancelling the Kuala Lumpur-Singapore high-speed rail (HSR) project.
Speaking at the first parliamentary debate since the new Pakatan Harapan government came into power in May, Najib asked the government to disclose the impact the project would have had on the economy and on jobs creation, arguing that the HSR was a project many people wanted.
Azmin had said during the debate in the Dewan Rakyat that the HSR was very costly for a 350km rail link, with the government trying to trim down on debts and liabilities exceeding US$251 billion.
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HSR from KL to Singapore: On again, off again
In the latest official announcement from the government of Malaysia, Azmin Ali, Malaysia’s Economic Affairs Minister, said that the Kuala Lumpur-Singapore High Speed Rail (HSR) project is not completely off the table. Much depends on the meeting Mr. Ali will be having with Khaw Boon Wan, Singapore’s Transport Minister, at the end of July.
Mr. Azmin said on Wednesday, July 18, “Any party that wants to cancel the project can do so because it is allowed by the agreement, but it must be based on the terms of the agreement. All options including reducing the cost, cancelling the project or deferring it, are available to us. So we will table it and discuss with them.
We have not excluded the possibility of the project going on, but are not making any suggestion unless there is a consensus from both countries.”
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Spore-KL HSR's fate teeters on two-way meeting outcome led by Azmin by end July
The fate of the RM110 billion Kuala Lumpur-Singapore High Speed Rail (HSR) project teeters on the outcome of a meeting led by Economic Affairs Minister Datuk Seri Azmin Ali with the island republic by the end of July.
“Any party that wants to cancel the project can do so because it is allowed by the agreement, but it must be based on the terms and agreement. All options including reducing the cost, cancelling the project or deferring it, are available to us. So we will table it and discuss with them. “(However,) we have not excluded the possibility of the project going on, but are not making any suggestion unless there is a consensus from both countries,” Azmin told reporters at the Parliament lobby today.
The minister reiterated he would meet with Singapore’s Transport Minister Khaw Boon Wan to discuss options on the HSR which was expected to be completed in 2024. The project was initially said to be cancelled due to its high cost but is back on the table for review, if cost is reduced by half.
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PM: Govt must be careful on what we say about HSR
Malaysia has yet to give full notice to Singapore on the cancellation of the High Speed Rail (HSR) project, Prime Minister Tun Dr Mahathir Mohamad confirmed today. He said that due to the negative reaction of the financial markets regarding any announcement, Malaysia must now be cautious in making decisions.
“As for HSR, we have not given full notice. We have to be careful in what we say,” Dr Mahathir said. The Singapore government recently said that Malaysia is yet to reply to its note on the announced cancelation of the HSR and also that it would seek compensation on costs incurred should be project should the project be shelved.
“Decisions are not made so easily. When we announce something, the market reacts negatively,” he added. “What we are trying to do is to run the country well financially. They should appreciate that,” he said.
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Dr M: HSR decision must be made carefully to avoid negative market reaction
Prime Minister Tun Dr Mahathir Mohamad told a media conference today that he believed that Singapore is familiar with Malaysia’s stand on the matter. He said previous announcements on the country’s fiscal situation did not bode well for the market, which he said tended to be grossly spooked by any adverse state of affairs.
Dr Mahathir was commenting on a remark by Singapore’s Transport Minister Khaw Boon Wan, who said that there has yet to be reply from the Malaysian government regarding a diplomatic note sent on June 1 to seek Malaysia’s position on HSR. “Decisions are not easily made. When we make a decision and announce it, the market reacts negatively. The market, apparently, like to be told lies about how good everything is (so that) they will give you good marks.
“If we tell them that we have discovered a lot of wrongdoings, they react by running away with (their) money, they will stop investing and all that. “But in fact what we are doing now is that to ensure this country is financially run properly. “That’s what we are doing. They should appreciate it. But their initial reaction is ‘oh RM1 trillion (in debt), let’s get out of here.’ That is their reaction.”
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Offers received to halve cost of of KL-S'pore HSR
The Malaysian government has received offers to halve the cost of the high-speed rail (HSR) project. This is following Prime Minister Tun Dr Mahathir Mohamad’s announcement that construction works for the 350km line would be postponed in light of the national debt of RM1 trillion.
According to a news report by Singapore’s Straits Times, Finance Minister Lim Guan Eng said last week that he had yet to receive a formal proposal but the offers showed that the current cost of the Malaysian portion of the project, estimated at RM110bil, was exorbitant.
“If the price was brought down, we could consider reviving the project, pending agreement from Singapore on any changes. “The project by itself makes some sense, but not at the exorbitant cost,” he had said.
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M'sia received offers to halve cost of HSR project - Guan Eng
Malaysia has received offers to halve the cost of building the Singapore-Kuala Lumpur High Speed Rail (HSR) project, said Finance Minister Lim Guan Eng. Lim in an interview with the Singapore Straits Times said if the initial costs of the project, which stood at RM110 billion, was lowered to half, there was a possibility for the government to resume the plan. He however said formal proposals had yet to be made. “Such offers showed that the initial cost for the project was too high. “The project by itself makes sense, but not at the exorbitant cost. “We don’t know whether that’s serious... (but) that means the whole thing was way overpriced and that raises more questions,” he was quoted as saying by the Singapore daily.
The HSR project, which reportedly cost about RM110 billion, is one of the several infrastructure plans initiated by former prime minister Datuk Seri Najib Razak’s administration being reviewed by the new government. Lim said the offers were made after Prime Minister Tun Dr Mahathir Mohamad voiced out the government’s intention to cancel the project which was deemed as too expensive especially when Malaysia was trying to reduce its RM1 trillion debt. When asked by The Straits Times if Malaysia had a different plan, Lim said a discussion on the matter would be held with Singapore.
The daily also quoted a Malaysian government source as saying the compensation cost for cancelling the HSR project was lower than the initial estimated RM500 million, excluding expenses that have already been incurred. However, the government source also floated the idea of a loan from Singapore. “If Singapore can offer a soft loan, it would drastically reduce the interest cost,” the source is quoted as saying.
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M'sia received offers to halve cost of HSR project - Guan Eng
Malaysia has received offers to halve the cost of building the Singapore-Kuala Lumpur High Speed Rail (HSR) project, said Finance Minister Lim Guan Eng. Lim in an interview with the Singapore Straits Times said if the initial costs of the project, which stood at RM110 billion, was lowered to half, there was a possibility for the government to resume the plan. He however said formal proposals had yet to be made.
“Such offers showed that the initial cost for the project was too high. “The project by itself makes sense, but not at the exorbitant cost. “We don’t know whether that’s serious... (but) that means the whole thing was way overpriced and that raises more questions,” he was quoted as saying by the Singapore daily.
The HSR project, which reportedly cost about RM110 billion, is one of the several infrastructure plans initiated by former prime minister Datuk Seri Najib Razak’s administration being reviewed by the new government. Lim said the offers were made after Prime Minister Tun Dr Mahathir Mohamad voiced out the government’s intention to cancel the project which was deemed as too expensive especially when Malaysia was trying to reduce its RM1 trillion debt.
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Guan Eng on HSR: 'You can get something... for half the price.'
Finance Minister Lim Guan Eng (pic) has said the government’s decision this week to scrap the high-speed rail (HSR) project was not only due to the high price tag of building it, but also steep cost burden to maintain the 350km link in the longer term.
In an interview with the South China Morning Post, Lim said the new administration estimated the initial cost of the high-speed rail project was likely to be more than RM100bil. But more vexing were the other costs down the road.
“The backloading is very high … availability payments, maintenance charges, and also asset replacement charges – these are all backloaded,” Lim said. He added: “The cap-ex [capital expenditure] is expensive, that’s one thing. We feel it’s above cost. "But the other aspect is maintenance charges, which we are responsible for.”
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HSR could be revived if cost is cut: Lim Guan Eng
Mr Lim said since Prime Minister Mahathir Mohamad floated a "trial balloon" in May, stating that his Pakatan Harapan (PH) government would seek to cancel the HSR project, "we have people offering we can cut (the price) by half". "We don't know whether that's serious... (but) that means the whole thing was way overpriced and that raises more questions," he said.
Singapore said this week that it has yet to receive a response from Malaysia, after sending a diplomatic note on June 1 seeking clarification on Kuala Lumpur's stance towards the HSR. The Republic has so far incurred S$250 million on the project, with a further S$40 million needed by the end of the year.
"Should Malaysia cause the HSR project to be terminated, we will deal with the question of compensation from Malaysia for costs incurred in accordance with the bilateral agreement and international law," Foreign Minister Vivian Balakrishnan told Parliament on Monday.
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M’sian Finance Minister Lim Guan Eng says HSR still on, if costs are reduced
The Straits Times reported today (July 11) that Malaysia’s Finance Minister Lim Guan Eng appeared to revive flagging hopes that the High Speed Rail (HSR) project could be back on track:
“The project by itself makes some sense but not at the exorbitant cost.”Lim said if the price was brought down, Malaysia could consider resurrecting the project, as long as Singapore agreed on certain changes. His remarks were made in an earlier interview with ST last Monday.
related: Pros & cons of building S’pore-KL High Speed Rail
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Pussyfooting on HSR hurts Malaysian taxpayers, Singapore daily tells Putrajaya
Putrajaya’s hesitation over the Kuala Lumpur-Singapore High-Speed Rail (HSR) project ultimately hurts Malaysian taxpayers, the Straits Times said today. In an article written by its deputy political editor Elgin Toh, the Singaporean daily said Malaysia risks accumulating a larger cost eventually by delaying a decision on the project.
“There is one more reason the Malaysian government should desist from its current behaviour: The chickens will come home to roost, because the Malaysian government is, in the long run, hurting Malaysian taxpayers most,” he said. It said Malaysia would bear the case if it finally goes before a court or an arbitration tribunal, but the price will be much smaller if the project is terminated now.
“Of course, the Malaysian government may not have any intention to pay. But if push comes to shove, the Singapore government can take action against assets in Singapore belonging to the Malaysian government. “That is drastic action, but Singaporeans should support such action should the day come,” Toh said.
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Singapore to seek RM743 million compensation if HSR project cancelled
Singapore will try to recover costs incurred for a rail project with Malaysia, which have exceeded S$250 million (RM743.95) and are still growing, if the new government in Kuala Lumpur confirms it has cancelled the project, officials said on Monday.
Malaysian Prime Minister Mahathir Mohamad has said he was cancelling the high speed rail (HSR) project to link Kuala Lumpur with Singapore. He said Malaysia would talk to its southern neighbour about any compensation it had to pay.
Singapore's Foreign Minister Vivian Balakrishnan and Transport Minister Khaw Boon Wan said Malaysia had yet to officially inform Singapore of the decision. "Should Malaysia cause the HSR project to be terminated, we will deal with the question of compensation from Malaysia for costs incurred in accordance with the bilateral agreement and with international law," Balakrishnan told Parliament. "The Singapore government has a duty to safeguard public funds by recovering these costs," he said.
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S'pore has spent over S$250m on HSR, 'completely wasted expenditure' if project cancelled
The Republic has spent more than S$250 million on the high-speed rail (HSR) project as of May this year, revealed Transport Minister Khaw Boon Wan in Parliament on Monday. He added that since a significant amount has been spent, it will be “completely wasted expenditure if the project does not proceed”.
Despite sending a diplomatic note to Malaysia on June 1 to seek clarification on its position on the HSR project, Singapore has yet to receive a reply, Khaw added. “At this point therefore, we have been left with no choice but to continue performing in accordance with the bilateral agreement, and thus continue to incur more costs,” he said. He pointed out that Singapore expects to incur more than S$6 million for the month of July, with these costs set to “increase rapidly with time”, adding that the country will need to spend at least S$40 million more from August to end-December 2018.
The amount of money that has been spent thus far covers the costs for consultancies to design the civil infrastructure, costs for dedicating manpower to oversee and deliver the HSR project, and costs for land acquisition, said Khaw.
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Singapore has spent more than S$250m on High-Speed Rail; no reply from Malaysia yet: Khaw
The concept design for Iskandar Puteri station along the planned KL-Singapore HSR line. (foto: MyHSR)
There has been no reply to Singapore’s diplomatic note sent on Jun 1 to seek Malaysia’s position on the High-Speed Rail (HSR) project even as costs incurred continues to rise quickly, said Transport Minister Khaw Boon Wan on Monday (Jul 9).
Mr Khaw said in Parliament that following numerous statements by Malaysian leaders, including Prime Minister Mahathir Mohamad, on the HSR project over the past 2 months, these suggest that Malaysia no longer intends to continue with the rail project linking its capital of Kuala Lumpur to Singapore.
The bilateral agreement signed in December 2016 is an international treaty to build a High-Speed Rail allowing travellers to commute from Jurong Lake District to the Bandar Malaysia development in KL in 90 minutes.
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S’pore has spent over S$250m on HSR, significant sums will be 'completely wasted' if project cancelled: Khaw
The Republic has spent more than S$250 million on the high-speed rail (HSR) project as of May this year, revealed Transport Minister Khaw Boon Wan in Parliament on Monday (Jun 9).
He added that since a significant amount has been spent, it will be “completely wasted expenditure if the project does not proceed”.
Despite sending a diplomatic note to Malaysia on June 1 to seek clarification on its position on the HSR project, Singapore has yet to receive a reply, Mr Khaw added.
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Singapore incurring costs on HSR as it awaits Malaysia's clarification
Singapore continues to incur costs on the Kuala Lumpur-Singapore High Speed Rail project as it is still meeting its obligations under the agreement while waiting for Malaysia to clarify its position on the project, said foreign minister Vivian Balakrishnan on Monday (July 9).
He said in Parliament that Singapore has sent the Malaysian government a third-person note – a diplomatic note – requesting a clarification on the issue, following announcements from Prime Minister Tun Dr Mahathir Mohamad that the project would be dropped.
Dr Balakrishnan was speaking on the HSR in response to a broader question from MPs on the state of relations between Singapore and Malaysia.
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Over $250M spent by Singapore on High-Speed Rail project; Malaysia's stance still not clarified
Malaysia has not clarified its official position on the High-Speed Rail (HSR) project, on which Singapore has spent over $250 million as of end-May this year, said Transport Minister Khaw Boon Wan.
These were some of the details that emerged during a debate in Parliament on Monday (9 July) regarding the project’s status, which has been called into doubt following comments made by various Malaysian officials – including Prime Minister Mahathir Mohamad, who said in May that the deal would be scrapped. The following month, however, the premier indicated that he would reconsider the deal if it were to be scaled down.
Based on preliminary estimates, the amount that Singapore has spent on the project includes the costs of land acquisition, manpower dedicated to the project and hiring of consultancies to design the civil infrastructure, Khaw told the House. “This is actual money that has already been spent. Our taxpayers’ money,” he added.
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Singapore-Malaysia relations: Both countries must fully respect sanctity of international agreements
Singapore is committed to engaging and cooperating with the new Malaysian government, said Minister for Foreign Affairs Vivian Balakrishnan in Parliament on Monday (Jul 9).
But working together, he stressed, must be on the basis that “both sides will fully respect the sanctity of international agreements, and that any disputes are resolved peacefully in accordance with international law".
Provided this condition is met, we are confident bilateral relations will prosper, for the mutual benefit of the citizens of both countries,” he said, in response to a parliamentary question filed by MP Christopher de Souza on the state of bilateral relations between both countries.
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High-speed rail project postponed, not scrapped, Mahathir tells Japanese media
PM Tun Dr Mahathir Mohamad seemed to have walked back from an earlier decision when he told a Japanese publication that the high-speed rail project had been merely postponed, not cancelled.
Speaking to Nikkei Asian Review on the sidelines of the Future of Asia conference in Tokyo, he said Malaysia cannot afford the project at this moment but signalled that the door is still open.
"We cannot say we will never have high-speed rail (HSR) in Malaysia. What we can do is we can postpone the project because it is far too costly at this moment," he said.
related: SINGAPORE-KUALA LUMPUR HIGH SPEED RAIL
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Malaysia PM Mahathir Mohamad to drop high-speed rail project with Singapore
Malaysia is dropping a plan for a high-speed rail link between Kuala Lumpur & Singapore, Malaysia’s PM Tun Dr Mahathir Mohamad said on Monday (May 28).
“It is a final decision but it will take time because we have an agreement with Singapore. We have to manage it at the least cost possible,” Dr Mahathir told a press conference.
The 92-yr-old, who triumphed over Datuk Seri Najib Razak in a general election this month, had previously said there were high financial penalties for pulling out of the project and Malaysia would try to find out how it could reduce those costs.
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KL-Singapore HSR: What you need to know
Once hailed as a "game-changer" by then-Malaysian Prime Minister Najib Razak, the proposed 350km-long HSR line aimed to reduce travel time between Singapore and Kuala Lumpur to around 90 minutes by train, from the current 11 hours on existing train services.
It was first unveiled in February 2013 by Prime Minister Lee Hsien Loong and Mr Najib at a leaders' retreat. The two countries signed a legally binding bilateral agreement on the project in 2016, paving the way for its implementation.
Construction on the project - which has been estimated to cost around RM50 billion (S$16.8 billion) to RM60 billion by Malaysia's then-second finance minister - was due to start this year, with the line expected to begin operations in 2026.
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S'pore-KL High Speed Rail Agreement
The concept design for Iskandar Puteri station along the planned KL-Singapore HSR line. (foto: MyHSR)
There has been no reply to Singapore’s diplomatic note sent on Jun 1 to seek Malaysia’s position on the High-Speed Rail (HSR) project even as costs incurred continues to rise quickly, said Transport Minister Khaw Boon Wan on Monday (Jul 9).
Mr Khaw said in Parliament that following numerous statements by Malaysian leaders, including Prime Minister Mahathir Mohamad, on the HSR project over the past 2 months, these suggest that Malaysia no longer intends to continue with the rail project linking its capital of Kuala Lumpur to Singapore.
The bilateral agreement signed in December 2016 is an international treaty to build a High-Speed Rail allowing travellers to commute from Jurong Lake District to the Bandar Malaysia development in KL in 90 minutes.
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HSR S'pore-KL in just 90 minutes
An alternative proposal to have a railway link to Singapore by upgrading the present infrastructure will only cost the government RM20bil (S$6.76 billion) – much lower than the high speed rail (HSR) project which will cost between RM60bil and RM70bil (S$20 billion to 23 billion).
The proposal will also save the government some RM500mil as it will not need to re-negotiate with Singapore since the plans that have been put in place by the authorities in the republic will not be disrupted.
According to sources, the Council of Eminent Persons (CEP) has been briefed on the alternative plan that utilises the existing double-track infrastructure of Keretapi Tanah Melayu (KTM). The only major difference is the travelling time of 130 minutes to Singapore compared with 90 minutes by the HSR.
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