[ad_1]
SINGAPORE – Malaysia paid Singapore compensation of more than $ 76 million after the cancellation of a controversial high-speed rail line between neighbors after years of negotiations to halt the start, officials said Monday.
The 350-kilometer (217-mile) railway was expected to reduce travel time between the city-state and Malaysia’s capital, Kuala Lumpur, to 90 minutes from the current four or more hours by car.
But neighbors scrapped the project in December after failing to agree on changes proposed by a new Malaysian government, which had taken power after the fall of a short-lived reformist administration.
The countries have had troubled relations since Malaysia expelled Singapore from a federation in 1965, ending a brief and stormy union of former British colonies.
Malaysia paid Sg $ 102.8 million (US $ 76.3 million) to Singapore to reimburse costs incurred for the project, the two governments said in a joint statement.
They said that the amount “represents a total and definitive settlement in relation to the termination of the bilateral agreement” to develop the line.
Singapore signed the deal to build the bullet train line in 2016 with the government of then-Prime Minister Najib Razak, but its fate was questioned after Najib was defeated in elections two years later.
New Prime Minister Mahathir Mohamad said he wanted to scrap the project as part of an effort to review major infrastructure projects approved by his scandal-tainted predecessor in a bid to reduce the country’s debt.
Then construction was suspended for two years at the request of Malaysia and the project was finally canceled after the collapse of Mahathir’s coalition government last year.
Read next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer and more than 70 other titles, share up to 5 gadgets, listen to the news, download from 4am and share articles on social media. Call 896 6000.
For comments, complaints or inquiries, please contact us.
[ad_2]
