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SINGAPORE: The “main concern” that led to the completion of the Kuala Lumpur-Singapore high-speed rail (HSR) project was Malaysia’s suggestion that the asset company that was to manage the project withdraw, said the minister of Ong Ye Kung Transportation on Monday (January 4).
Speaking at the year’s first session of Parliament, Ong also revealed that Singapore had incurred costs of more than S $ 270 million for the project, which was first announced in 2013.
The revelations come after the prime ministers of Malaysia and Singapore issued a joint statement on January 1 to say that the HSR would be suspended after the agreement on the project expired on December 31.
The statement noted that the Malaysian government had proposed “various changes” to the project in light of the impact of the COVID-19 pandemic on the country’s economy.
Both governments have had various discussions on these changes and have not been able to reach an agreement, said Mr. Lee Hsien Loong and Mr. Muhyiddin Yassin.
READ: KL-Singapore HSR project ended after agreement expires, both countries must proceed with ‘necessary actions’
MyHSR Malaysia and SG HSR Singapore launched a joint tender for an asset company for the HSR project in December 2017.
The asset company would have been necessary to ensure that the interests of both countries were protected and minimize the possibility of future disputes over the HSR, Ong told parliament.
It noted that neither Malaysia nor Singapore had experience operating a high-speed rail line, so it had been agreed that a “first-tier industry player” would be appointed to act as an asset company through a “open and transparent international network”. offer”.
This company would have supplied the train system and operated the network, and would have been responsible to both countries.
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The company’s disposal of assets represented a “fundamental deviation” from the bilateral agreement and could not be accepted, Ong said.
Malaysia then decided to allow the agreement to be terminated, he added.
It noted that while Malaysia is obliged to compensate Singapore for the completion of the project, the exact terms of compensation cannot be disclosed due to confidentiality agreements under the bilateral agreement.
The amount will include various abortifacient costs, such as consulting services, infrastructure design and labor, but not land acquisition costs, since the value of the land can be recovered, he said.
Singapore is also verifying a “small component of miscellaneous abortion costs” for the project suspension requested by Malaysia, it added.
“Now that the HSR (bilateral agreement) has been finalized, Singapore is ready to discuss any new proposals on Malaysia’s KL-Singapore HSR in good faith, but starting from scratch,” said Mr. Ong.
IMPACT ON THE AVIATION HUB
Mr. Ong spoke in response to Sengkang GRC Member of Parliament Louis Chua, who had inquired about the total expenditure incurred by Singapore to date on the HSR project, as well as the terms specified in the bilateral agreement in relation to compensation after termination of the agreement. by either party.
Mr. Ong also addressed Radin Mas MP Melvin Yong, noting that some media reports had suggested that a proposal to connect the HSR to Kuala Lumpur International Airport was a point of discussion due to the possible impact on the State of Singapore Aviation Center.
Mr. Ong said, however, that the main concern would be technical problems, as the HSR would have had to share tracks with Express Rail Link, an existing rail system that runs at half the expected speed of the HSR.
READ: From Conception to Completion: KL-Singapore HSR Project Timeline Over 8 Years
Indeed, the heavy air traffic between Kuala Lumpur and Singapore, which Mr. Ong described as the world’s busiest air link with around 5 million passengers a year, singled out the HSR project as “viable, mutually beneficial and strategic to long term”. finished”.
In Parliament, Hougang MP Dennis Tan inquired about the reasoning given by the Malaysian government on its change of position regarding the appointment of an asset company.
“I thank the MP for the question, but I really can’t speak on behalf of the Malaysian government,” Mr Ong said in response to the Workers’ Party MP.
LITTLE IMPACT ON JURONG PLANS
In response to questions from West Coast GRC MP Ang Wei Neng, the Transport Minister said there was little impact on the plans for the Jurong Lake District, where the Singapore terminal for the HSR would have been located.
Plans to transform the area began in 2008 as part of efforts to build urban centers outside of Singapore’s central business district, long before the HSR project was first proposed in 2012 and before the decision was made to locate the terminal in Jurong in 2015.
“This will be the largest regional and commercial center outside of our city center, bringing many jobs, business and recreational opportunities for Singaporeans and Singapore companies,” said Mr. Ong.
Parcels of land purchased by the government would still be needed to carry out these plans, he said, noting that the former Jurong Country Club site would be used for new mixed-use development and community facilities, while the Raffles Country Club site would be used for the future Cross Island Line western depot and an integrated train test center.
Another cross-border rail project, the Johor Bahru-Singapore Rapid Transit System (RTS) Link, was “progressing well” and Singapore will begin construction of the project soon, Ong said.
