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Singapore and Malaysia abandon high-speed rail project after failing to reach agreement
- The US$25 billion project would have connected downtown Kuala Lumpur to Singapore’s central business district, reducing travel time to two-and-a-half hours
- The Malaysian government will be obligated to pay Singapore as much as US$75 million as a fee for the cancellation
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Malaysia and Singapore on Friday said they would terminate a plan for a multibillion-dollar high-speed rail project after protracted talks failed to break a deadlock over Kuala Lumpur’s demands for changes to a blueprint first approved in 2016.
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As a result of the cancellation, the Malaysian government of Prime Minister Muhyiddin Yassin is liable to pay Singapore a hefty termination fee, reportedly more than S$100 million (US$75 million).
In a joint statement, Muhyiddin and Singaporean Prime Minister Lee Hsien Loong said they were unable to agree on Malaysia’s proposed changes before the December 31 deadline.
“Both countries will abide by their respective obligations, and will now proceed with the necessary actions, resulting from this termination of the High-Speed Rail agreement,” the statement said.
The prime ministers said the neighbours remained “committed to maintain good bilateral relations and cooperate closely in various fields, including strengthening the connectivity between the two countries”.
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