Azmin: KL-Singapore HSR deferred indefinitely

It's official. The Kuala Lumpur-Singapore High-Speed Rail (HSR) project has been deferred indefinitely.

Economic Affairs Minister Mohamed Azmin Ali told reporters today that this has been agreed upon by his Singaporean counterparts.

"The Singaporean government has accepted our opinion that the project should be deferred (indefinitely) because we are confident that Malaysia's economy will (eventually) improve.

"There is no need to pay compensation during this period," he told reporters at the sidelines of the Selangor legislative assembly sitting today.

However, he said that the penalty will be incurred if the project is cancelled after the deferment date, which has not been set.

The HSR project was reintroduced by the Najib Abdul Razak administration in 2010 as part of an ambitious plan to cut travel time between the two cities and spur economic growth.

Although some contracts had already been handed out, the current administration has attempted to scrap the deal on grounds that it was unviable and that the country could not afford it at the moment.

According to Najib, the project would cost RM72 billion, while the current administration estimated the total cost, with interest factored in, was closer to RM110 billion.

[More to follow] - Mkini