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.