Malaysia agreed to bear the costs if it still has not proceeded with the project on 31 May 2020.
At Malaysia’s request, Singapore agreed to suspend the construction of the Kuala Lumpur-Singapore High Speed Rail (HSR) project up until 31 May 2020.
According to a joint statement, Malaysia will bear the agreed costs in suspending the HSR project. If by 31 May 2020, Malaysia does not proceed with the HSR project, Malaysia will also bear the agreed costs incurred by Singapore in fulfilling the HSR bilateral agreement.
“During the suspension period, Malaysia and Singapore will continue on the best way forward for the HSR project with the aim of reducing costs,” the two countries said.
Earlier today, Singapore’s coordinating minister for infrastructure and minister for transport Khaw Boon Wan and Malaysia’s minister of economic affairs YB Dato’ Seri Mohamed Azmin bin Ali exchanged legal documents in Putrajaya to vary the HSR Bilateral Agreement based on the new understanding.
With this, the HSR Express Service between Singapore and Kuala Lumpur is expected to commence by 1 January 2031, instead of the original commencement date of 31 December 2026.
Singapore and Malaysia’s infrastructure companies, SG HSR Pte. Ltd. and MyHSR Corporation Sdn. Bhd., will also be calling off the ongoing international joint tender for the HSR Assets Company (AssetsCo).
“The ministers reaffirmed the mutual benefits of the HSR project as it will bring both countries closer together by improving connectivity, deepening people-to-people ties and catalysing further economic cooperation,” the statement concluded.