Malaysia had forked out a total of S$102.8 million (RM320.07 million) to Singapore as compensation for aborting the Kuala Lumpur-Singapore High-Speed Rail (HSR) project.
The payment was intended to reimburse Singapore for the cost incurred in laying the groundwork for the project.
Singapore’s Transport Ministry, in a statement, confirmed the city-state had received the payment.
“The two countries reached an amicable agreement on the amount following a verification process by the government of Malaysia.
“This amount represents a full and final settlement in relation to the termination of the bilateral agreement,” it said.
It added that both countries remain committed to maintaining good relations and fostering close cooperation.
The termination of the HSR project was announced on Jan 1 this year after the bilateral agreement lapsed.
Malaysia wanted to make changes to the rail line, but Singapore was not agreeable to the plan, ultimately leading to the termination.
Putrajaya said the proposed changes were in view of the state of Malaysia’s economy as it was no longer financially viable.
Malaysia’s deficit is expected to climb to six percent this year, significantly higher than the initial target of 3.2 percent due to the Covid-19 pandemic.
Minister in the Prime Minister’s Department Mustapa Mohamed said Malaysia is exploring an alternative model which will be cheaper and can benefit local firms.
However, the alternative HSR will likely terminate in Johor instead of Singapore, limiting its economic impact compared to the original model. - Mkini
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