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PETALING JAYA: The cost of compensating Singapore for the cancellation of the high-speed train project cannot be disclosed, says the Prime Minister’s Department of Economic Affairs Minister Mustapa Mohamed.
In a Facebook post, Mustapa said the government has yet to receive details on the compensation as they would cover certain costs incurred by Singapore for the project.
“We are awaiting the details from Singapore and once we receive them, they will be studied and confirmed. These claims are allowed and have been accepted.
“But the amount cannot be disclosed because under the bilateral agreement, both countries are subject to a secrecy clause.”
Still, he said, the government would discuss the matter with Singapore and try to get the country’s approval to share information on compensation.
So any estimated figures on compensation were “mere speculation.”
Earlier, a government source had told the FMT that Malaysia would have to pay Singapore some RM320 million in compensation, although former Prime Minister Najib Razak said this could rise to RM1 billion, given the amount Singapore had spent on the draft.
Similarly, Mustapa said, the claims of a Kuala Lumpur-Johor Bahru high-speed rail project were also “speculation” and that the government was now studying the way forward.
He also referred to proposed amendments to the HSR project that Malaysia and Singapore were unable to accept.
This, he said, included an HSR model used in Europe, the UK, Japan and South Korea, a new project structure that would provide flexibility in project financing and other changes.
“These amendments include changes to the station’s alignment and design that would have reduced spending by around 30%.
“These proposals can reduce costs, save time and retain the benefits of the project,” he said, adding that, sadly, both parties failed to reach an agreement.
On New Year’s Day, the two governments announced that the HSR project had been canceled after the bilateral agreement expired.
