KUALA LUMPUR: Malaysia has agreed with Singapore to postpone the development of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project by two years, reported Malaysian media on Monday (Sep 3).
Malaysian Economic Affairs Minister Azmin Ali said there will be no penalty imposed, and that details will be made clear when a new agreement is signed soon.
Advertisement"We have agreed to a reasonable period," Azmin told reporters at an event when asked how long the project would be postponed, in a recording reviewed by Reuters.
Malaysia remains committed to the project, said Azmin, adding that it would need to be more affordable.
"We want to continue with this project because it will bring good to both countries," Azmin said. "However, over the course of the postponement we will discuss ways to reduce the cost."
Channel NewsAsia has reached out to Singapore's Ministry of Transport for comment.
AdvertisementAdvertisementSingapore's Transport Minister Khaw Boon Wan had said last week after a meeting with Azmin that both sides will announce their joint decisions on the project "soon".
On his part, Azmin said after the meeting that the two countries are "inching closer to a win-win deal".
The HSR is among several projects approved by the previous Malaysian government that are now being reviewed following the Pakatan Harapan's historic victory in the May general election.
Shortly after leading the coalition to victory, Malaysian Prime Minister Mahathir Mohamad declared his intention to cancel the HSR project, saying it would cost "a huge sum of money" and was not beneficial to Malaysia.
Mahathir said in July that his government would look to negotiate a deferment of the HSR instead, to reduce any burden of compensation.
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