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SINGAPORE: It’s the end of the line for the Kuala Lumpur-Singapore high-speed rail (HSR) project after the prime ministers of both countries announced on Friday (January 1) that the agreement for the company had expired.
Since then, the Government of Singapore has requested Malaysia to compensate it for costs already incurred by Singapore in meeting its obligations under the HSR Bilateral Agreement.
The announcement comes as a blow to many who were eagerly awaiting the proposed 350 km long HSR line, which was aimed at reducing travel time between Singapore and Kuala Lumpur to around 90 minutes by train.
In addition to dramatically reducing travel time between Singapore and Kuala Lumpur, the rail link was expected to contribute 21 billion ringgit (S $ 6.7 billion) to gross domestic product to Malaysia and Singapore, in addition to creating 111,000 jobs for 2060.
Here is a timeline for the project and its developments in three different government administrations in Malaysia:
2013-2018: INITIAL AGREEMENT SIGNED WITH THE NAJIB RAZAK MANAGEMENT
The project was first made public in February 2013 at the Singapore-Malaysia Leaders Retreat by Prime Minister of Singapore Lee Hsien Loong and then-Prime Minister of Malaysia Najib Razak.
The two countries later signed a Memorandum of Understanding (MOU) in July 2016, witnessed by both prime ministers. This was followed by a legally binding bilateral agreement on the project in late 2016, which paved the way for its implementation.
Under the agreement, HSR express service was expected to begin on December 31, 2026.
The signing ceremony of the memorandum of understanding was witnessed by Prime Minister Lee Hsien Loong and his then Malaysian counterpart Najib Razak. (Photo: Justin Ong)
The agreement also stipulated that both governments took responsibility for developing, building and maintaining civil infrastructure and stations within their own countries.
In 2017, the Singapore Land Transport Authority (LTA) announced the formation of a wholly owned subsidiary, SG HSR, to implement the project and build, own, finance and maintain civil infrastructure in Singapore.
It would then work with its Malaysian counterpart, MyHSR, to jointly name an asset company and an international operator for the project through an open international tender.
It was also determined that the project would be carried out over 350 km at eight stops: Singapore, Iskandar Puteri, Batu Pahat, Muar, Melaka, Seremban, Sepang-Putrajaya and Kuala Lumpur. Terminal stations were planned for Bandar Malaysia in Kuala Lumpur and Jurong East in Singapore.
The conceptual design of the Muar station along the HSR KL-Singapore. (Photo: MyHSR)
The line was scheduled to host an express service from Kuala Lumpur to Singapore, a domestic service from Kuala Lumpur to Iskandar Puteri, and a shuttle service from Iskandar Puteri to Jurong East.
The Singapore government then acquired Raffles Country Club and Jurong Country Club for the project, with the latter being intended to house the HSR terminal.
READ: KL-Singapore HSR: What you need to know
2018-2020: THE GOVERNMENT OF MAHATHIR PAKATAN HARAPAN REQUESTS TO POSTPONATE THE HSR PROJECT
In May 2018, the historic 14th Malaysian General Election saw a change of government. The Pakatan Harapan coalition, led by Dr. Mahathir Mohamad, achieved a dramatic victory over the Najib Barisan Nasional alliance.
Dr. Mahathir, who was appointed prime minister, told reporters that the HSR project was “not beneficial” for Malaysia, and said the country would “not make any money” from the deal.
In an interview with the Financial Times, he said that the HSR project would cost Malaysia RM110 billion but would not earn the country “a single penny”.
Singaporean Prime Minister Lee Hsien Loong shakes hands with his Malaysian counterpart Mahathir Mohamad during a joint press conference in Putrajaya on April 9, 2019 (Photo: AFP).
In July, he then said his government would seek to negotiate with Singapore to postpone the project.
“When we look at the financial situation of the country, we think that we could not go ahead (with the HSR),” he told reporters.
“But after having studied it and the implications of unilaterally scrapping the contract, we decided that we might have to do it at a later date, we might have to cut the price. But lowering the price is very difficult as far as we can understand. So it has to be postponed. “
In September 2018, Singapore and Malaysia signed a new agreement to formally agree to postpone the construction of the HSR until the end of May 2020.
Under the new agreement, HSR express service was expected to begin on January 1, 2031 instead of December 31, 2026.
Singapore’s Transport Minister Khaw Boon Wan (left) and Malaysia’s Minister of Economic Affairs Azmin Ali exchanged documents in Putrajaya on September 5, 2018, on the postponement of the KL-Singapore high-speed rail project. . The signing was witnessed by Singapore’s Deputy Prime Minister Teo Chee Hean and Malaysian Prime Minister Mahathir Mohamad. (Photo: MCI)
Malaysia would also have to pay abortion costs amounting to approximately S $ 15 million before the end of January 2019 to suspend the project.
Furthermore, if Malaysia did not proceed with the project before May 31, 2020, it would also bear the agreed costs incurred by Singapore to comply with the HSR Bilateral Agreement, according to a joint statement from both countries on the matter.
During the suspension period, both countries “would continue to discuss the best way forward for the HSR project with the aim of reducing costs,” the statement said.
2020: THE GOVERNMENT OF MUHYIDDIN PROVIDED A FINAL EXTENSION OF THE PERIOD OF SUSPENSION, THE AGREEMENT ENDS DECEMBER 31
In late February 2020, the Pakatan Harapan coalition’s tenure in the Malaysian government ended abruptly after a flurry of political activity.
Dr. Mahathir resigned as prime minister and Mr. Muhyiddin Yassin was appointed to lead a new government led by the Perikatan Nasional coalition.
In May 2020, both countries reached another agreement to postpone the HSR Kuala Lumpur-Singapore project again until the end of the year.
It was made after Malaysia requested to extend the project’s suspension period, to allow both parties to discuss and evaluate Malaysia’s proposed changes to the project.
Malaysian Prime Minister Muhyiddin Yassin and Singapore Prime Minister Lee Hsien Loong gathered at the midpoint of the Causeway on July 30, 2020 to witness the ceremony marking the official resumption of the system liaison project. rapid transit (RTS). (Photo: Gaya Chandramohan)
Singapore’s then-Transport Minister Khaw Boon Wan said Singapore accepted the suspension in a spirit of bilateral cooperation, but stressed that it would be the “final extension” of the suspension period.
During the presentation of Malaysia’s national budget in November 2020, Malaysian Finance Minister Tengku Zafrul Aziz said that the Malaysian government intended to continue the Kuala Lumpur-Singapore ISS project as it could ” generate a positive multiplier effect on the national economy “. .
However, he argued that this also depended on continuing talks with the Singapore government.
On December 2, 2020, Prime Minister Lee Hsien Loong and Malaysian Prime Minister Muhyiddin Yassin discussed the project via video conference.
Foreign Minister Dr. Vivian Balakrishnan, Prime Minister Lee Hsien Loong and Minister of Transport Ong Ye Kung during a video conference with Malaysian Prime Minister Muhyiddin Yassin on December 2, 2020 (Photo: MCI / LH Goh).
The pair “took stock of the progress of the discussions” and “gained a good understanding of the respective positions of Malaysia and Singapore.”
They added that more details about the project will be released “in due course.”
After that, Malaysian media reported that Putrajaya could continue the project without Singapore’s involvement. Therefore, the line, which starts in Kuala Lumpur, could end in Johor in Malaysia instead of Jurong East in Singapore.
On January 1, 2021, Lee and Muhyiddin announced that the project would be discontinued after the HSR agreement expired on December 31, 2020.
