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SINGAPORE: Malaysia paid more than S $ 102 million in compensation to Singapore for the end of the Kuala Lumpur-Singapore high-speed rail (HSR) project, ministers from both countries said on Monday (March 29).
Payment of S $ 102,815,576 (RM320,270,519) has been made to Singapore for costs incurred for the development of the HSR project, and in connection with the extension of the project suspension, Singapore’s Minister of Transport Ong Ye Kung and the Malaysian Minister in the Prime Ministry of the Department (Economy) Mustapa Mohamed said in a joint statement.
“The two countries reached an amicable agreement on the amount after a verification process by the Malaysian government. This amount represents a full and final agreement regarding the termination of the bilateral agreement,” the statement read.
“Both countries remain committed to maintaining good relations and fostering close cooperation for the mutual benefit of the peoples of the two countries.”
READ: From Conception to Completion: KL-Singapore HSR Project Timeline Over 8 Years
In a Facebook post on Monday, Ong said: “I am glad that we have been able to close this chapter in a friendly way, without affecting the good bilateral relations between our two countries.”
He added that there are many areas in which Singapore and Malaysia have opportunities to cooperate, including issues that Singaporean Foreign Minister Vivian Balakrishnan discussed with Malaysian leaders last week.
This includes restoring “some air travel,” as well as travel across the Causeway, Ong said.
READ: Singapore and Malaysia will work to recognize COVID-19 vaccine certificates and ‘progressively restore’ cross-border travel
The HSR project was suspended after the agreement expired on December 31, 2020, the prime ministers of both countries said in a joint statement on January 1.
Singapore’s Ministry of Transport previously said that Malaysia has to compensate Singapore for costs already incurred by Singapore to meet its obligations under the bilateral agreement.
Mr. Mustapa had also said that Malaysia would meet its obligations under the agreement and that both countries would “do what is necessary” to determine the amount of compensation.
READ: Completed HSR project is a missed opportunity to boost Singapore’s economic competitiveness, KL: Experts
In September 2018, both parties agreed to postpone the construction of the HSR until the end of May last year. Malaysia had to pay Singapore S $ 15 million for the costs incurred to suspend the project.
Subsequently, Malaysia requested an additional seven-month extension until the end of December to allow both parties to discuss and evaluate Malaysia’s proposed changes to the project.
READ: Company asset disposal is ‘top concern’ leading to HSR termination, project has cost Singapore over S $ 270 million – Ong Ye Kung
READ: Malaysia expects compensation for HSR project completion to be less than S $ 270 million: Mustapa Mohamed
The proposed 350 km long HSR line was aimed at reducing travel time between Singapore and Kuala Lumpur to about 90 minutes by train, from the current 11 hours on existing train services.
In addition to dramatically reducing travel time between Singapore and Kuala Lumpur, the rail link was expected to bring S $ 6.7 billion (RM21 billion) in gross domestic product to Malaysia and Singapore, in addition to creating 111,000 jobs by 2060. .
