KL-Singapore HSR project terminated, Malaysia to pay compensation

by AZREEN HANI/ FILE PIX

THE Kuala Lumpur – Singapore High Speed Rail project has been terminated and Malaysia has to compensate Singapore for costs already incurred by the republic, Singapore’s Transport Ministry says.

“PM of the Republic of Singapore Lee Hsien Loong and PM of Malaysia Tan Sri Muhyiddin Mohd Yassin met via videoconference on 2 December 2020 to review the status of the HSR Project, including changes proposed by Malaysia to the HSR Project.

Malaysia has since allowed the HSR BA to be terminated, and has to compensate Singapore for costs already incurred by Singapore in fulfilling its obligations under the HSR BA in accordance with the Parties’ agreement,” the ministry said in a statement.

“Our relationship with Malaysia is deep and multi-faceted, and we look forward to continued good relations and close cooperation with Malaysia for the mutual benefit of the people of both countries,” it added.

Earlier today, both Lee and Muhyiddin announced in a joint statement that in light of the Covid-19 impact on the Malaysian economy, “the Government of Malaysia had proposed several changes to the HSR Project,” they said.

 
Both governments had conducted several discussions with regard to changes on the project and had not been able to reach an agreement.
 
“Therefore, the HSR Agreement had lapsed on 31 December 2020,” they said.

“Both countries will abide by their respective obligations, and will now proceed with the necessary actions, resulting from this termination of the HSR Agreement,” the statement added.

Singapore and Malaysia signed the Kuala Lumpur – Singapore High Speed Rail (HSR) Bilateral Agreement (BA) in 2016.

The construction of the HSR Project was subsequently suspended, from September 2018 to 31 December 2020, at Malaysia’s request, with the understanding that the extension of the suspension period until 31 December 2020 would be the final extension.