KL, S’pore defer HSR project until May 2020

KUALA LUMPUR: Malaysia and Singapore appear to have reached a compromise on the implementation of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.

According to a report by business weekly The Edge, the move would see Malaysia being spared a RM500 million penalty for a two-year deferral of the project.

The report, which also carried by its sister portal, The Edge Property, said the deferral would be in effect until May 31, 2020.

Citing sources, it said the agreement was reached “in a spirit of good neighbourliness”.

The source said Singapore recognised the strain the project’s construction could have on Malaysia’s financial health.

It also said the original agreement to build HSR, which was signed in 2016, did not contain provisions for a postponement.

Malaysia would have faced up to RM500 million in penalties, had it dropped the project.

Pakatan Harapan, after taking over the government after the 14th General Election, had revealed the project could cost up to RM110 billion.

Economic Affairs Minister Datuk Seri Azmin Ali had been in negotiations with Singapore in the past month to reach a compromise.

Azmin, in a meeting with Singapore’s Transport Minister Khaw Boon Wan last Thursday, had said they were inching closer to a “win-win deal”.