No go for KL-Singapore rail project as deadline passes

Malaysia and Singapore have cancelled the Kuala Lumpur-Singapore High Speed Rail (HSR) project after failing to agree on changes proposed by Putrajaya due to the impact of the Covid-19 pandemic on the Malaysian economy.

In a joint statement, Prime Minister Muhyiddin Yassin and his Singapore counterpart Lee Hsien Loong said both governments had held several discussions but were unable to reach an agreement.

“Both countries will abide by their respective obligations, and will now proceed with the necessary actions resulting from the termination of the HSR agreement,” they said.

They also assured of their continued commitment to maintaining good bilateral relations and cooperation, including in strengthening connectivity between the two countries.

The two-year suspension period of the HSR project expired on Dec 31.

The project, which was to take off in 2026, was first postponed four months after the fall of the Barisan Nasional government in 2018, as the incoming Pakatan Harapan government undertook a review of several large-scale projects over financial concerns.

It is understood that the two-year suspension of the project would mean Malaysia paying millions in compensation to Singapore.

MalaysiaNow previously reported a source as saying that Malaysia has its own plan for the HSR, one that would benefit the country more in the long run “even if we have to pay compensation”.