Ministry: Compensation not needed over delay in RTS Link project

ISKANDAR PUTERI: Malaysia does not have to pay a single sen to Singapore as compensation for the delay in the Johor Baru-Singapore Rapid Transit System (RTS Link) project, says the Transport Minister.

Anthony Loke said this was because no joint venture company (JV) was formed by the two sides on the project.

“The initial agreement that both countries signed previously is just a memorandum of understanding, so the issue of compensation does not arise,” he told reporters after paying a visit to Johor Mentri Besar Datuk Osman Sapian at Kota Iskandar here yesterday.

He said Malaysian officials already informed their Singapore counterparts about the delay of between one and two months, which was caused by the general election and the forming of the new government.

However, he was hopeful that the project would proceed as planned.

He stressed that the Federal Government had agreed in principle and was committed to continuing with the project linking Bukit Chagar in Johor Baru to Woodlands North in the island republic.

“The project must get approval first, pending cost and other details, but I will bring a memorandum about RTS to the Cabinet as soon as possible,” he added.

Loke said if the Cabinet gave its approval, then the first process was to set up a JV company between Malaysia and Singapore as the RTS Link involved two nations.

“Despite the delay, RTS Link will be completed by 2024,” he said.

In January, Malaysia and Singapore signed the agreement for the new 4.2km RTS Link to transport some 10,000 passengers an hour, or 72,000 passengers a day, in four coaches travelling at 70kph.

The link, with co-located Customs, Immigration and Quarantine (CIQ) complex, will provide seamless connectivity between Johor Baru and Singapore.

The RTS Link will run above ground in Johor and on a 25m-high bridge track across the Straits of Johor before travelling underground to Woodlands North.

The June 30 deadline for Prasarana Malaysia Bhd and Singapore’s SMRT Corporation Ltd to form a JV company to operate the RTS Link was missed, as Prasarana Malaysia suspended discussions with SMRT after the general election in May.

Meanwhile, on the Gemas to Johor Baru electrified double-track rail project, Loke said the 197km track was 20% completed.

“The project, to be completed by Oct 31, 2021, will connect the whole west coast from Johor Baru to Padang Besar,” he said.

He said any proposal to add more stations in Johor would need the Cabinet’s approval, as it would bring about a cost hike, which the Federal Government was sensitive about.