Singapore – Malaysia has paid Singapore more than S$102 million in compensation for the terminated Kuala Lumpur-Singapore High-Speed Rail (HSR) project, ministers from both countries confirmed on Monday (Mar 29).
Singapore’s Transport Minister Ong Ye Kung and Malaysia’s Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed said in a joint statement on Monday that a total of S$102,815,576 (RM320,270,519) has been paid to Singapore for the costs incurred in the development of the HSR project.
“The two countries reached an amicable agreement on the amount following a verification process by the Government of Malaysia. This amount represents a full and final settlement in relation to the termination of the bilateral agreement,” read the statement, according to a channelnewsasia.com report.
“Both countries remain committed to maintaining good relations and fostering close cooperation for the mutual benefit of the peoples of the two countries.”
On Monday, Mr Ong also took to Facebook to confirm the successful settlement of compensation for the terminated project.
“I am glad that we were able to close this chapter amicably, without affecting the good bilateral relations between our two countries,” said Mr Ong.
Moving forward, Mr Ong noted that the two countries have opportunities for cooperation in many areas.
“These include the issues Minister Vivian Balakrishnan discussed with leaders in Malaysia last week, such as the restoration of some air travel, which the Ministry of Transport will be very involved in, and also commuting via the Causeway,” he added.
The HSR project was terminated after the two countries could not reach an agreement by the Dec 31, 2020 deadline.
The project had envisaged a 350-km rail line with seven stations. It was expected to cut travel time between Kuala Lumpur and Singapore to 90 minutes compared to the current estimated four hours by car.
Malaysia and Singapore, represented by then Malaysian Prime Minister Najib Razak and Prime Minister Lee Hsien Loong, entered a legally-binding bilateral agreement on the project in Putrajaya in December 2016./TISG
Read related: M’sia minister expects compensation paid to S’pore for HSR project to be much lower than S$270 million
M’sia begins construction of S’pore-Johor RTS Link; project cuts travel time to 5 mins