Not cancelled: Malaysia-Singapore high-speed rail delayed in Mahathir U-turn

Work on the US$17 billion project will be postponed for two years rather than cancelled, as was suggested by the Malaysian prime minister in the aftermath of his shock election victory

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Malaysian Prime Minister Mahathir Mohamad with Singapore Prime Minister Lee Hsien Loong and their wives. Photo: AFP

Published: 3:15pm, 5 Sep 2018Updated: 11:34pm, 5 Sep 2018

Construction of the high-speed rail link between Malaysia and Singapore will be postponed for two years rather than cancelled, the two governments said on Wednesday.

After weeks of talks, negotiators managed to avoid scrapping the project altogether – the outcome Malaysian Prime Minister Mahathir Mohamad had previously said he preferred.

An agreement, signed in Mahathir’s office by Singapore’s Transport Minister Khaw Boon Wan and the Malaysian Economic Affairs Minister Azmin Ali, defers the start of construction work on the project to May 31, 2020, by which time Southeast Asia’s third largest economy hopes its poor fiscal position will have improved.

Previously the project had been slated to open to the public in 2026. It will now begin operating in 2031.

The move is an about-turn from the stance Mahathir took soon after his shock election victory in May.

The 93-year-old had said the project, approved by his predecessor Najib Razak, was unnecessary and would be cancelled.