KUALA LUMPUR – The government was only planning to temporary postpone the Kuala Lumpur-Singapore High Speed Rail (HSR) and not to cancel the whole initiative.
Prime Minister Tun Dr Mahathir Mohamad said that the government do not have sufficient funds to pay the compensations to Singapore and on the contrary, had decided to postpone the project instead.
Earlier, Tun Mahathir disclosed that the government would be required to pay at least RM500 million of compensation if Malaysia chose to cancel the HSR mega project.
“We cannot talk about compensations now. We also do not have sufficient funds for Singapore to cancel the HSR project.
“At this moment, the Minister of Economic Affairs Datuk Seri Azmin Ali would represent the government to renegotiate with Singapore.
“Singapore also wanted to know the status of this project. At this moment, with our economic status, we would postpone the HSR project,” he told the journalists at the lobby of Parliament today when asked to update the latest status of the HSR project which has been flip-flopping since the Pakatan Harapan government ruled the country.
Elaborating further, Dr Mahathir said that the government would also need to study the implications of the contract and the actual cost of the project.
Earlier, the Prime Minister said that he wanted to cancel the project as it was not beneficial to the country besides involving high expenditures.
Recently, the Singaporean Transport Minister Khaw Boon Wan said that the republic is still awaiting an official reply from Malaysia in regards to the HSR project.
He said, they have yet to receive any feedback on the matter and only knew about its termination through the mass media. -MalaysiaGazette