Malaysia Economy Minister Azmin Ali says Malaysia will have to pay S$15 million to Singapore by January 31, 2019.
“Malaysia to bear Singapore’s cost in the project if it does not proceed with the construction by 2020,” said the Malaysian Minister.
He said suspending the project beyond 2 years risks pushing costs higher.
Malaysia and Singapore have also agreed to defer until May 31, 2020 the construction of the high-speed rail link.
He also said the Malaysia, Singapore company will call off the ongoing tender.
The new Malaysian government has been pressing Singapore on the HSR, attempting to renegotiate the deal which it said was not conducive to Malaysia’s economic situation.
The presser today will probably put an end to the intense speculation on the deal.
The HSR is now expected to start by Jan 31. 2031 contrary to the Dec 31, 2026 date.
“Malaysia and Singapore will continue to discuss ways to cut the project cost,” Azmin said at a presser today in Putrajaya.
But he said Singapore has agreed to suspend the construction of the HSR until May 31, 2020.
“Singapore has agreed to the suspension on Malaysia’s request,” said Azmin.