Singapore considering Malaysia's request to further suspend KL-S'pore HSR project: Khaw

An artist's impression of the High Speed Rail Terminal in Jurong East. PHOTO: FARRELLS

SINGAPORE - Malaysia has asked for a further suspension of the proposed Kuala Lumpur-Singapore High-Speed Rail (HSR) line, ahead of a May 31 deadline to decide whether to proceed with the project.

Disclosing this on Friday (May 29), Transport Minister Khaw Boon Wan said: "A few days ago, Malaysia asked us for the possibility of extending the suspension so that we can continue the discussion on what changes they have in mind."

"We are giving their request a strong consideration," he added.

Mr Khaw, who spoke during an online engagement session with engineering students and rail engineers, said Singapore remains "committed and enthusiastic and positive" about the prospects of the project for both countries.

Both countries had inked an agreement in September 2018 to formally suspend work on the proposed 350km rail link for about two years.

The completion date for the project, initially slated for end-2026, was pushed back to January 2031.

Former Malaysian Prime Minister Mahathir Mohamad had initially wanted to scrap the HSR as part of a review of his country's mega projects, in a bid to trim a RM1 trillion (S$328 billion) national debt.

However, a deal was negotiated to suspend the project instead as a cancellation would have entailed a high amount of compensation under the HSR agreement signed between the two countries.

The Malaysian company in charge of developing the HSR said last year that it is reviewing proposed changes to the project and identifying cost-reduction options for the Malaysian government.

Malaysia had paid Singapore $15 million for the abortive costs the Republic incurred as a result of the project being suspended.

The HSR link would cut travelling time between Kuala Lumpur and Singapore to 90 minutes, compared with more than four hours by car.

Speaking in Parliament in October 2018, Mr Khaw had said then that a suspension beyond two years would mean current cost estimates would likely be no longer valid, and affect the viability of the project and its business case.

A longer suspension period would also impact development plans for the Jurong Lake District, which will host the Singapore HSR Terminus and many transport, commercial, residential and recreational developments, he added.

Should the HSR project be terminated, Malaysia would have to reimburse the project implementation costs incurred by Singapore up to the point of suspension.

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