Malaysia is set to pay RM300 million in compensation to Singapore after deciding to terminate the Kuala Lumpur-Singapore High Speed Rail (HSR) contract and instead undertake the project without Singapore’s participation, a source said yesterday.
This comes as the long-drawn negotiation between the two sides is reaching its end-December deadline.
The source said the project will now see the line stretching from Kuala Lumpur to Johor Bahru, as opposed to the previous plan to link the capitals of both countries — one of the busiest flight routes in the world.
SEE: Singapore knows Malaysia's KL-SG HSR plans: Mahathir
This is in line with previous media reports and speculation that the railway project will proceed without Singapore, with Malaysia to pay the island state the termination compensation.
The project was first announced in September 2010, under the previous Barisan Nasional (BN) Government, and was slated for completion in 2026.
Works were initially slated to start in late 2018, after an open tender was called in November 2017 with the eight stations, namely Bandar Malaysia, Sepang-Putrajaya, Seremban, Melaka, Muar, Batu Pahat and Iskandar Puteri in Malaysia and the Jurong East station in Singapore, to commence operations by end-December 2026.
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