PUTRAJAYA: Singapore and Malaysia have formally agreed to postpone the construction of the KL-Singapore High-Speed Rail until May 2020, with Malaysia bearing the agreed costs of suspending the project.
Malaysia's Economic Affairs Minister Azmin Ali and Singapore's Transport Minister Khaw Boon Wan exchanged legal documents on the new understanding at the Prime Minister's Office in Putrajaya on Wednesday (Sep 5).
AdvertisementUnder the new agreement, the express service of the HSR is expected to start by Jan 1, 2031, instead of Dec 31, 2026.
The exchange of documents was witnessed by Singapore Deputy Prime Minister Teo Chee Hean, his Malaysian counterpart Wan Azizah Wan Ismail and Malaysian Prime Minister Mahathir Mohamad.
Malaysia will also have to pay abortive costs amounting to about S$15 million before the end of January 2019 for suspending the project.
"We have all worked tirelessly in order to bring about a resolution that is mutually beneficial," said Mr Azmin after the signing ceremony.
AdvertisementAdvertisement"Without doubt, this agreement would not have happened if not for our strong commitment to bilateral cooperation between our two countries," he added.
"I am confident that this spirit will see us through the final fruition of the Kuala-Lumpur Singapore High-Speed Rail project."
Mr Khaw also spoke after signing the new agreement.
"Many Singaporeans had been looking forward to the realisation of this project and we remain committed to this project," he said, adding that he understood why Malaysia had to suspend the development of the HSR.
[h=3]READ: KL-Singapore HSR: What you need to know[/h]The HSR is among several projects approved by the previous Malaysian government that have come under review following the Pakatan Harapan's historic victory in the May general election.
Malaysian Prime Minister Mahathir Mohamad announced shortly after the election that the HSR project would be scrapped entirely, saying that the rail will not benefit Malaysia.
He later said in July that the project would be deferred instead.
This is a developing story, please refresh for updates.
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