Singapore and Malaysia said on Friday a long-delayed project to build a high-speed rail (HSR) link between the two neighbours will be terminated, with Kuala Lumpur to pay compensation for costs incurred.
(Adds Malaysian minister’s statement)
SINGAPORE/KUALA LUMPUR, Jan 1 (Reuters) - Singapore and Malaysia said on Friday a long-delayed project to build a high-speed rail (HSR) link between the two neighbours will be terminated, with Kuala Lumpur to pay compensation for costs incurred.
First announced in 2013, the 350-km (217-mile) project linking Kuala Lumpur to Singapore has been estimated by analysts to cost around $17 billion.
It was suspended in 2018 shortly after former Malaysian prime minister Mahathir Mohamad came to power with a pledge to tighten finances and review major deals made by his predecessor Najib Razak.
In May, the suspension was extended another six months to allow discussion of changes to the project.
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Singapore and Malaysia abandon high-speed rail project after failing to reach agreement Bhavan Jaipragas in Hong Kong Travellers at Singapore’s Changi Airport mall, which would likely have received increased traffic as a result of the high-speed rail project. Photo: EPA
Malaysia and Singapore on Friday said they would terminate a plan for a multibillion-dollar high-speed rail project after protracted talks failed to break a deadlock over Kuala Lumpur s demands for changes to a blueprint first approved in 2016.
As a result of the cancellation, the Malaysian government of Prime Minister Muhyiddin Yassin is liable to pay Singapore a hefty termination fee, reportedly more than S$100 million (US$75 million).
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