The governments of Malaysia and Singapore signed a bilateral agreement to suspend the construction of the Kuala Lumpur-Singapore high speed railway line for a period of up to 31 May 2020.
According to the agreement, during the suspension period, Malaysia and Singapore will continue to discuss on the best way forward for the HSR Project with the aim of reducing costs.
Malaysia will bear the agreed costs in suspending the HSR Project. If by 31 May 2020, Malaysia does not proceed with the HSR Project, Malaysia will also bear the agreed costs incurred by Singapore in fulfilling the HSR Bilateral Agreement. Malaysia will have to pay Singapore S$15 million (USD 36 million) by end-January next year for suspending the KL-Singapore High-Speed Rail project, Malaysian Economic Affairs Minister Azmin Ali said.
The HSR service between Singapore and Kuala Lumpur is expected to commence by 1 January 2031, instead of the originalcommencement date of 31 December 2026. Given the length of the suspension, Singapore and Malaysia’s Infrastructure Companies, SG HSR and MyHSR Corporation will be calling off the ongoing international joint tender for the HSR Assets Company (“AssetsCo”).
The Kuala Lumpur-Singapore high-speed rail project envisages the construction of a 330-km double track line and 8 stations, and it was estimated at USD 16 billion.