Malaysia needs to compensate Singapore over HSR termination

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MyHSR Kuala Lumpur - Singapore High Speed Rail project KL-SG HSR

By Kasthuri Jeevendran

KUALA LUMPUR – Malaysia needs to pay compensation to Singapore following the termination of the 350 kilometre (km) Kuala Lumpur – Singapore High Speed Rail (HSR) Project.

According to a statement by the Ministry of Transport (MOT) Singapore, the two countries met via a video conference on 2 December 2020 to review the status of the HSR project.

The Ministry said, among the content of the discussion includes, the changes proposed by Malaysia to the project.

According to MOT, Malaysia has allowed the HSR Bilateral Agreement to be terminated and has to compensate Singapore for costs already incurred by the republic in fulfilling its obligations under the agreement.

“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,” said the statement.

The two governments had earlier decided to postpone the construction until 31 May 2020, before they can reach a better approach to continue with the project.

Following that, Malaysia revised the project along with MyHSR Corp to identify cost-cutting options, optimising the array, location of the station and business model.

MyHSR Corp Sdn Bhd then announced consortium, Malaysian Resources Corp Bhd and Gamuda Bhd as their partner for north division. Meanwhile, property developer, Yeoh Tiong Lay Sdn Bhd and TH Properties Sdn Bhd will be handling the southern part of the project.

Eight stations were initially planned, namely, Bandar Malaysia, Sepang-Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri while the Jurong East Station in Singapore would be its final station.

The KL-Singapore HSR is projected to operate in 2026 and can reduce the travel time between Kuala Lumpur and Singapore to a mere 90 minutes, far exceeds that of a four-hour drive. –MalaysiaGazette

Read More:

Failing to reach an agreement, HSR is terminated

HSR postponed to May 2020, Malaysia to pay RM45.1 million in deferment

Malaysia, Singapore to sign agreement to defer KL-SG HSR

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Hidden cost in HSR makes it RM110 billion

 

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