RM110 billion for KL-Singapore HSR is an estimate, agreement allows for cancellation – Azmin Ali

According to economic affairs minister Datuk Seri Azmin Ali, the RM110 billion cost for the Kuala Lumpur-Singapore High Speed Rail (HSR) project was just an estimate, and the final figure could be lower.

In a report by The Sun, Azmin said the higher figure provided was due to the many hidden costs that were not disclosed previously. During a Parliament sitting recently, Datuk Seri Najib Abdul Razak (BN-Pekan) asked how the federal government arrived at the RM110 billion amount, adding that the open tender process for the project would only close on Dec 28.

“As I mentioned earlier, the RM110 billion is the estimated costing after calculation by the Finance Ministry, and not the final cost after an open tender. Of course, in any open tender process, there will be savings from the biddings made. Which is why we in PH (Pakatan Harapan) have always asked that all projects be done with an open tender,” he replied.

RM110 billion for KL-Singapore HSR is an estimate, agreement allows for cancellation – Azmin Ali

On a related note, MCA deputy president Datuk Seri Wee Ka Siong (BN-Ayer Hitam) also questioned the sum and said the project is estimated to cost between RM55 and RM74 billion instead. In a reply, Azmin said, “in many cases (relating to the project), there are many hidden costs that were not revealed by the then BN (Bariasan Nasional) government. And PH felt responsible to reveal the overall costing.”

Azmin also said noted there was a clause within the HSR bilateral agreement with Singapore which allowed either country to pull out of the project. “The agreement that was signed previously provides a clause for any of the two nations to cancel the project. However, there are several terms that needed to be abided with,” he said.

However, he did not reveal if any compensation must be paid to Singapore if Malaysia opts out of the deal. Previously, prime minister Tun Dr Mahathir Mohamad had said the HSR project would be shelved for now, and a RM500 million penalty would have to be paid if plans to build the HSR were dropped.

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