Malaysia High Speed (HSR) Rail Project Terminated and Malaysia Will Honuor The Obligation

 

The KL-SG HSR Story

The idea of the Kuala Lumpur-Singapore High Speed Rail was initiated through the Economic Transformation Programme to transform Malaysia into a high-income nation. The KL-SG HSR is an alternative travel mode between two of Southeast Asia’s most vibrant and fast-growing economic engines.

The iconic project will include 7 stations in Malaysia – Bandar Malaysia, Sepang-Putrajaya,

Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri, before reaching its last destination in Jurong East, Singapore.

The connectivity will enable businesses to be more productive and access a broader market place, while the public will enjoy an improved travel experience of shorter travel time (90 minutes from KL to Singapore) and a comfortable ride, through the HSR’s city centre to city centre connection along the corridor.

The KL-SG HSR is more than just a transportation project – it is an impetus towards socio-economic development in Kuala Lumpur and the intermediate cities along the HSR corridor, starting with economic clusters centred 

MyHSR

Photo - MyHSR

Malaysia will honour KL-Singapore HSR obligations following project's cancellation: Minister

KUALA LUMPUR: Malaysia will honour its obligations under the Bilateral Agreement for the cancelled High-Speed Rail (HSR) project, Minister in the Prime Minister's Department Mustapa Mohamed said on Friday (Jan 1).

Mustapha Mohamed

The Singapore and Malaysian governments had on Friday announced the termination of the HSR project following the lapse of their agreement on Dec 31, 2020.

“By virtue of the Bilateral Agreement and previously agreed terms, Malaysia will honour its obligations under the Bilateral Agreement. Both countries will initiate the necessary to determine the amount of compensation.”

 

He said that the COVID-19 pandemic had severely impacted the Malaysian economy, and that the terms of the Bilateral Agreement signed in 2016 were no longer viable for Malaysia given the current economic situation.

Photo - MyHSR

“Since late 2018, the government has explored a number of alternatives to reduce the cost of the Kuala Lumpur–Singapore High Speed Rail (HSR) project. This has become more urgent with the onset of the COVID-19 pandemic.”

Mr Mustapa added that since mid-2020, the government of Malaysia had proposed some changes to the project, including the project structure, alignment and station design.

The original project structure, he said, would have required substantial and long-term government guarantees.

“The new project structure is expected to provide the Government the flexibility in financing options, such as deferred payments, public-private partnerships and the possibility of accessing financing at favourable rates,” he said.

CNA