Malaysia and Singapore agree to delay HSR project by two years – no compensation required during that time

Malaysia and Singapore agree to delay HSR project by two years – no compensation required during that time

Malaysia and Singapore have agreed to postpone the development of the KL-Singapore High Speed Rail (HSR) project, with no compensation required. The deferral will be in effect until May 31, 2020, and was reached “in a spirit of good neighbourliness,” according to The Edge.

“Singapore has agreed with the Malaysian government’s view to delay the implementation of this project until a period when the economy has recovered,” said Malaysia’s economic affairs minister Datuk Seri Azmin Ali as reported by Channel NewsAsia.

In the report, sources said Singapore understood that Malaysia was currently in the midst of reviewing its financial position, and that construction of the HSR would be an added burden. It was previously reported that Malaysia would have to pay RM500 million to Singapore as compensation should the project be scrapped.

“No compensation will be paid within the deferment period. At the end of the deferment period, if it is cancelled, only then will we need to pay. We want to continue with this project because it will bring good to both countries. However, over the course of the postponement we will discuss ways to reduce the cost,” said Azmin.

With this, there’s no confusion as to whether the HSR project would be deferred or cancelled. The saga started shortly after the new Pakatan Harapan government came into power, when prime minister Tun Dr Mahathir Mohamad said the project would be called off due to its high costs. Later on, the premiere stated that the project was merely postponed, with negotiations taking place between both countries for a deferment.

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Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • jinggo on Sep 04, 2018 at 1:28 pm

    Terima kasih singapore
    Jiran sepakat membawa berkat.

    Like or Dislike: Thumb up 14 Thumb down 2
    • Pilihanraya Kalah Teruk on Sep 04, 2018 at 2:19 pm

      Yes we should postpone it to make sure we get clean and uncorrupted contractors. Once this is done, it will be like 50% of its original inflated cost.

      I am happy we have a clean Government running the show. Thank you Singapore for caring for Malaysians

      Like or Dislike: Thumb up 24 Thumb down 27
      • meladam on Sep 04, 2018 at 2:47 pm

        huh, and, by the time.. the cost will be double due to increasing raw material price in future

        Like or Dislike: Thumb up 27 Thumb down 5
        • irwan serigala on Sep 04, 2018 at 3:28 pm

          By the time ….stronger MYR wud lower overall cost & raw material price.

          Like or Dislike: Thumb up 13 Thumb down 22
          • Just about every economist predict growth for next few years will be weaker than the past few years. Stronger MYR? U wud have to pray hard that USD drops like Toyota sales.

            Like or Dislike: Thumb up 15 Thumb down 2
  • azrai on Sep 04, 2018 at 1:47 pm

    Look, it can be renegotiate. For the ECRL I think Tommy should look into fraud element in signing the agreement. The agreement can be void if there is fraud for example sign the contract to cover 1MDB IPIC debt. And yes, LPT3 from Terengganu to Pangkalan Kubor is a better option. maybe G can renegotiate with the Chinese contractor to take LPT3 job instead of the ECRL.

    Like or Dislike: Thumb up 2 Thumb down 18
    • Isobel Chin on Sep 04, 2018 at 2:34 pm

      Tommy has more bigger things to worry, like why he vetoed his client’s case without a court hearing.

      Like or Dislike: Thumb up 46 Thumb down 12
      • stastasta on Sep 05, 2018 at 3:17 pm

        it was the MACC deputy prosecutor who decided not to proceed further due to lack of strong evidence.

        Like or Dislike: Thumb up 1 Thumb down 1
    • Sputjam on Sep 04, 2018 at 9:41 pm

      You think china will let you investigate? And blemish their gahmen?

      Like or Dislike: Thumb up 2 Thumb down 0
  • lilytan on Sep 04, 2018 at 4:59 pm

    How about billions already paid for the ECRL? I rather pay 500mil then waste billions.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Michael on Sep 04, 2018 at 6:37 pm

    wait for 2 years? ofcz.. Dr. M need to step down as the plan for Anwar… but is just a Plan.

    Like or Dislike: Thumb up 4 Thumb down 0
  • transformer on Sep 04, 2018 at 7:12 pm

    Why do MY need to compensate SG when almost 98% of this rail in build in MY land??? Who the hell negotiate such stupid terms where MY are losing eventhough 98% its in MY…. WHY WHY WHY?

    Like or Dislike: Thumb up 1 Thumb down 4
    • Sputjam on Sep 04, 2018 at 9:43 pm

      Not only that. We pay 90%, they get 50% of control. I say we stop the hsr at nusajaya. Last leg to singapore, use smrt.

      Like or Dislike: Thumb up 1 Thumb down 3
 

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