06/09/2018

S'pore-KL High Speed Rail Deferred

Update 18 Jul 2024: Malaysia to decide on HSR project with Singapore by year-end

Malaysia is shortlisting proposals for a high-speed rail link between the capital here and Singapore and should decide if it will proceed with the multi-billion dollar project soon. In an interview with Bloomberg, Transport Minister Anthony Loke expressed hope that Malaysia’s Cabinet would decide on the viability of the project by the end of the fourth quarter.

“Once we have a policy decision to proceed with the high-speed rail, we will start negotiations with Singapore,” Loke was quoted as saying. The government has already shortlisted three out of seven consortiums that submitted proposals following a request for information issued late last year. Loke did not disclose the companies involved, stating only that the government’s policy is to award the high-speed rail project to a group that is at least 51 per cent owned by Malaysian firms.

According to local news outlet The Edge, the shortlisted proposals include those led by YTL Corp., Berjaya Land Bhd and China Railway Construction Corporation. YTL and Berjaya are controlled by Malaysian tycoons Francis Yeoh and Vincent Tan, respectively. The 350-kilometre rail line between Kuala Lumpur and Singapore was initially approved in 2013 but was scrapped seven years later due to disagreements over costs and other issues.


Malaysia to decide on Singapore high-speed rail link this year
The Malaysia-Singapore high-speed rail (HSR) line – which seeks to cut travel time between the two cities to 90 minutes from more than four hours by car – was estimated to cost as much as 100 billion ringgit ($21.4 billion) as a government-funded project

Malaysia will decide in the coming months whether to proceed with a multibillion-dollar high-speed rail (HSR) line between Kuala Lumpur and Singapore, as Prime Minister Anwar Ibrahim’s government weighs proposals from a narrowing list of private consortiums.

Transport Minister Anthony Loke said in an interview Wednesday that he hopes Malaysia’s cabinet will decide on the viability of the project by the end of the fourth quarter. “Once we have a policy decision to proceed with the high-speed rail, we will start negotiations with Singapore,” Loke said.

Anwar’s government already shortlisted three out of seven consortiums that submitted proposals after issuing a so-called request for information late last year, Loke said, declining to identify the companies involved. The government’s policy is to have a strategic asset like the high-speed rail given to a group that is at least 51%-owned by Malaysian firms, he said. Separate proposals led by YTL Corp., Berjaya Land Bhd., and China Railway Construction Corporation have been shortlisted for the project, local news outlet The Edge reported in March, citing sources it didn’t identify. YTL and Berjaya are controlled by Malaysian tycoons Francis Yeoh and Vincent Tan, respectively.


Malaysia seeks proposals to revive high-speed rail project with Singapore

Malaysia on Tuesday said it was seeking proposals from private firms to develop a high-speed railway between its capital Kuala Lumpur and neighbouring Singapore, reviving a multi-billion-dollar project called off more than two years ago.

Malaysia and Singapore had cancelled a plan to build a 350-kilometre (217-mile) rail line connecting the two countries after they failed to agree on several proposed changes to the project. At the time the project was estimated to cost around $17 billion and companies from China, Japan, South Korea and Europe had expressed an interest in contracts to build, operate and finance the trains and rail assets. In a statement on Tuesday, MyHSR Corp, a Malaysian-government owned entity responsible for the project, called for the private sector to submit proposals to develop and operate the Kuala Lumpur-Singapore High Speed Rail project via a public-private partnership model.

MyHSR invited local and international firms and consortia to submit proposals. "(The process) marks the government's initiative to reactivate the ... project via new funding mechanisms and implementation models in efforts to further improve the rail transport infrastructure and to invigorate the national economy," it said. Singapore's transport ministry did not immediately respond to a request for comment. Singapore indicated last year the country is open to fresh proposals from Malaysia on the project, according to media.


Malaysia revives 'ambitious' high-speed rail plan amid hurdles
Malaysia has revived a high-speed rail plan to connect Kuala Lumpur and Singapore

Malaysia is reviving a plan to build the country's first high-speed railway connecting its capital of Kuala Lumpur to neighboring Singapore after the two governments failed to reach an agreement on an earlier version of the project. The first seven proposals submitted recently by the private sector include bids from consortiums led by state-owned China Railway Construction; South Korea's Hyundai Rotem, a Hyundai Motor unit focused on railways and defense; and local conglomerates such as MMC, Gamuda, YTL, WCT Holdings and Berjaya, according to people familiar with the matter.

MyHSR, the government-owned entity leading the project, declined to name the companies interested in the project. Japanese companies did not submit proposals during the expression-of-interest process that ended Jan. 15. MyHSR will shortlist three to four consortiums for the next phase, the request for proposals round, as early as this month and present its review of the bids to the cabinet, sources said. The Malaysian government is expected to present the proposal to Singapore over the next few months to determine if the city-state wants to take part in the project. "We want to finalize [the proposal] as quickly as possible, hopefully over the next three to four months," a Malaysian official told Nikkei Asia. MyHSR is also discussing an option to extend the line from Kuala Lumpur only to the southern state of Johor if Singapore decides not to participate.

The expression-of-interest phase of the bidding follows Malaysia's call in July last year for the private sector to submit proposals to develop and operate the project through a public-private partnership model. In August, Singapore said it was willing to discuss any new proposal from Malaysia "starting from a clean state," then-Acting Transport Minister Chee Hong Tat told parliament. The city-state said at the time that it had not received any new proposals from its neighbor.


New Malaysian bids to revive KL-Singapore high-speed rail, but govt funding remains missing link
An artist's impression of the upcoming Seremban station on the KL-Singapore high-speed rail line

Malaysia’s plan to revive the Kuala Lumpur-Singapore high-speed rail (HSR) by relying wholly on private sector financing is unlikely to get off the ground, say industry insiders, with fresh bidders for the project requesting government funding in their proposals.

According to MyHSR Corporation, the government-owned company in charge of developing and implementing the HSR, seven local and international consortia submitted their concept proposals at the close of its request for information (RFI) exercise on Jan 15. It declined to name the companies involved. The RFI was held in order for the Malaysian government to assess the private sector’s ability to fully finance the project without state funds or guarantees. Prime Minister Anwar Ibrahim’s administration has said it is open to reviving the HSR, but it will not pay for the 350km-long line, which is estimated to cost over RM100 billion (S$28 billion).

It was reported that Japanese companies including East Japan Railway Company pulled out from the project just days before the Jan 15 deadline, describing it as “too risky” without the government’s financial support. But other companies have ventured a bid, in the hope that the government will relent on its stance. Analysts say the bidders may propose and justify the need for financial support from the government as part of their submissions.



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.


Singapore-Kuala Lumpur Bullet Train Link Delayed by Four Years


A bullet train linking Singapore and Kuala Lumpur won’t be a reality for at least a decade as Malaysia’s Prime Minister Mahathir Mohamad seeks to pare his nation’s debt and review projects signed off by his predecessor Najib Razak.

The neighbors agreed to delay kicking off work on the 350-kilometer (218 miles), multibillion dollar link until the end of May 2020, while the first train isn’t likely to ply the route before January 2031, four years later than originally envisioned, according to a joint statement the two governments issued on Wednesday in Putrajaya, Malaysia. Faced with liabilities of more than 1 trillion ringgit ($241 billion), Malaysia has been seeking ways to cut costs and has been pushing to postpone the project aimed at trimming the land journey time between the two cities to 90 minutes, from as long as five hours now. The ongoing international tender will be scrapped in a setback for potential bidders, including those from China and Japan that were keen to gain a slice of the orders.

As compensation for the delay, Malaysia will pay Singapore S$15 million ($11 million) before the end of January 2019, Malaysia’s Minister of Economic Affairs Azmin Ali said. Singapore’s Transport Minister Khaw Boon Wan said the two countries still remain committed to the project.

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Kuala Lumpur – Singapore high speed rail project officially postponed

An agreement to delay construction of the planned 350 km Kuala Lumpur – Singapore high speed rail line by up to five years was signed by representatives of the governments of Malaysia and Singapore on September 5.

The project is one of several approved by the previous Malaysian government which the new administration put under review following the general election in May. In a joint statement, the two governments said they were ‘committed’ to the high speed line project. However, ‘at Malaysia’s request and in the spirit of bilateral co-operation’ Singapore had agreed to suspend construction ‘for a period up to’ May 31 2020. Malaysia will bear the costs of suspending the project, reported to be around S$15m.

The proposed completion date has been put back from December 31 2026 to January 1 2031.


Azmin: HSR construction off until May 2020

Malaysia and Singapore have agreed to suspend the construction of the High-Speed Rail (HSR) until May 2020 and will reimburse the republic S$15mil (RM45.1mil), says Datuk Seri Azmin Ali.

The Economic Affairs Minister said the amount is to be paid by January 2019, as stated in an agreement to amend the HSR bilateral agreement. The terms were drawn out based on a new understanding between the new Pakatan Harapan administration and Singapore.

In the event that the project does not proceed after the end of the suspension date, Malaysia will have to reimburse Singapore costs incurred in fulfilling the HSR agreement.


KL-Singapore High-Speed Rail formally postponed; service targeted to start by Jan 2031
The signing of the agreement on postponing the KL-Singapore High-Speed Rail project. (Photo: MCI)

Singapore & Malaysia have formally agreed to postpone the construction of the KL-Singapore High-Speed Rail until end-May 2020, with Malaysia having to pay Singapore S$15 million for costs incurred in suspending the project. 

In a joint statement released on Wednesday (Sep 5), both countries said the HSR express service is now expected to start by Jan 1, 2031, instead of the original commencement date of Dec 31, 2026. 

The new agreement was signed by Malaysia's Economic Affairs Minister Azmin Ali and Singapore's Transport Minister Khaw Boon Wan at the Prime Minister's Office in Putrajaya on Wednesday afternoon. 

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KL-Singapore HSR project officially deferred to May 2020
Singapore’s Transport Minister Khaw Boon Wan and Malaysia’s Economic Affairs Minister Mohamed Azmin Ali signing an agreement to defer the Kuala Lumpur-Singapore High Speed Rail project on Wednesday (Sep 5)

After months of uncertainty, the Kuala Lumpur-Singapore High Speed Rail (HSR) project has been formally postponed for nearly 2 years, with Malaysia to pay abortive costs of S$15 million to Singapore by January next year.

Malaysia will have until May 31, 2020 to proceed with construction works, as per an agreement signed in Putrajaya on Wed (Sept 5) by Mr Khaw Boon Wan, Singapore's Transport Minister & Coordinating Minister for Infrastructure, and Malaysia's Economic Affairs Minister Azmin Ali.

If the project goes ahead, the rail services between Singapore and Kuala Lumpur are expected to start by Jan 1 in 2031, four years later than the original scheduled date of Dec 31, 2026. Responding to media queries, Singapore's Ministry of Transport (MOT) said that the 4-year delay would be due to the additional time required by both countries to implement the project after it resumes, "including the calling of fresh tenders and carrying out additional technical works”.

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KL-S'pore HSR postponed: A boost for bilateral ties, but not all is ‘win-win’  
A view of the construction site of the Jurong East terminus in Singapore for the Kuala Lumpur-Singapore High-Speed Rail

Experts & observers who spoke to TODAY unanimously agreed that the pact to defer the Kuala Lumpur-Singapore High Speed Rail (HSR) project was a good outcome for bilateral relations, but they were divided on whether the postponement was a "win-win" for both countries, as Malaysian economic affairs minister Azmin Ali put it.

Dr Terence Fan, transport analyst from the Singapore Management University, said that both parties came out "stronger", especially in terms of bilateral ties, after Wednesday's agreement. "I think Singapore would be a little bit too cold-hearted if it does not make any allowances to help Malaysia."

By agreeing to a deferment, "Singapore is keeping Malaysia as a party still committed in developing the rail project, so I think it's a big win for both sides", he added.

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Malaysia to pay Singapore RM45 million to defer HSR

The agreement to defer the project was signed by Economic Affairs Minister Mohamed Azmin Ali and Singapore's Transport Minister Khaw Boon Wan in Putrajaya today.

MALAYSIA will pay S$15 million (RM45 million) as abortive costs to Singapore for deferring the High Speed Rail project until May 2020 said Azmin Ali.

The Economic Affairs Minister said the sum has to be paid by January 2019.

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Malaysia to pay Singapore about S$15m for deferring HSR project

Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali said Malaysia will be obliged to pay about S$15 million to Singapore by end-January next year as cost to defer the Kuala Lumpur-Singapore High Speed Rail (HSR) project.

At a joint press conference with Singapore Minister of Transport Khaw Boon Wan today, Azmin said this was the outcome of the discussions by officials from both countries on Aug 27 and 28.

"Both parties have met on Aug 27 and 28 to discuss every details, every single item. And finally both parties agreed that the cost needed to be paid by Malaysian government [amounted] to about S$15 million, and that need to be paid before end of January 2019, so we still have some space," he said.


NOT CANCELLED: MALAYSIA-SINGAPORE HIGH-SPEED RAIL DELAYED IN MAHATHIR U-TURN
Singapore Prime Minister Lee Hsien Loong (centre left) and Malaysia’s then prime minister Najib Razak (centre right) after signing up to the Kuala Lumpur-Singapore high-speed rail link. Photo: EPA

Construction of the high-speed rail link between Malaysia and Singapore will be postponed for two years rather than cancelled, the two governments said on Wednesday.

After weeks of talks, negotiators managed to avoid scrapping the project altogether – the outcome Malaysian Prime Minister Mahathir Mohamad had previously said he preferred.

An agreement, signed in Mahathir’s office by Singapore’s Transport Minister Khaw Boon Wan and the Malaysian Economic Affairs Minister Azmin Ali, defers the start of construction work on the project to May 31, 2020, by which time Southeast Asia’s third largest economy hopes its poor fiscal position will have improved.

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Timeline of HSR suspension fraught with twists and turns
The concept design for the Iskandar Puteri station in Johor along the planned Singapore-Kuala Lumpur High-Speed Rail line

Singapore and Malaysia signed an agreement on Wednesday (Sept 5) to suspend the Kuala Lumpur-Singapore High Speed Rail (HSR) project for a period of two years.

The decision to suspend the construction of the project, some four months after the Pakatan Harapan (PH) government came to power, was made after a period of negotiations and mixed signals in recent months.

Here is a recap of the developments:
  • Feb 19, 2013 - Prime Minister Lee Hsien Loong and his then Malaysian counterpart Najib Razak announced an agreement to build a high-speed rail (HSR) link between Kuala Lumpur and Singapore
  • July 19, 2016 - Singapore and Malaysia signed a seven-point agreement which, among other things, had a roll-out date in 2026 for the HSR service.
  • May 28, 2018 - Newly elected Malaysian Prime Minister Mahathir Mohamad said Putrajaya would drop the HSR project as part of drastic cuts to government spending and investment.

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Singapore not told of HSR status, but it knows what Malaysia wants: Mahathir
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 (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.


read more


Full Coverage:
Malaysia to pay about SG$15m to Spore by Jan 2019 for defering HSR
KL-Singapore High-Speed Rail project deferred to May 2020
KL-Spore HSRl formally postponed; service targeted to start by Jan 2031
HSR ink agreement to defer for 2 yrs; KL to pay S$15m suspending work
Malaysia, Spore sign agreement to defer rail deal for 2 years
Singapore, Malaysia sign agreement to postpone HSR project
Azmin: HSR construction off until May 2020
Malaysia, Singapore to sign agreement to defer rail deal
Malaysia, Singapore to sign agreement to defer rail deal -source
Spore, Malaysia sign new agreement on HSR; project to be postponed
Kuala Lumpur – Singapore high speed rail project officially postponed
S'pore M'sia to sign agreement on HSR project; postponement expected
Spore, Malaysia to ink agreement today to defer high-speed rail project
Malaysia to bear costs if HSR delayed beyond 2020
HSR defer HSR to May 2020; KL to pay S$15m for suspending work
Timeline of HSR suspension fraught with twists and turns
KL-Spore HSR formally postponed, express service to start by Jan 2031
Spore, Malaysia to sign agreement at 2pm to defer high-speed rail project
Malaysia, Spore ink agreement to defer high-speed rail project for 2 years
Singapore-Kuala Lumpur Bullet Train Link Delayed by Four Years
Malaysia inks deal to defer HSR to 2020, to pay Singapore RM45m
Malaysia, Singapore to sign agreement to defer rail deal, says source
Malaysia-Singapore high-speed rail delayed in Mahathir U-turn
Malaysia to pay Singapore about S$15m for deferring HSR project
Malaysia, Singapore agree to suspend HSR until May 31, 2020
Malaysia, Singapore agree to defer HSR project
Malaysia, Singapore to sign agreement to defer HSR deal, says source
Malaysia, Singapore to sign agreement to defer rail deal - source
Malaysia to pay Singapore RM45 million to defer HSR


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