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Malaysia and Singapore terminate agreement to build high-speed rail link

Singapore and Malaysia said a deal to build a high-speed rail (HSR) link between the two neighbours will be terminated, after a suspension period to negotiate terms of the project expired on Dec 31

Topics
Singapore | Malaysia | High-Speed Trains

Reuters  |  SINGAPORE/KUALA LUMPUR 

Singapore Prime Minister Lee Hsien Loong
Singapore Prime Minister Lee Hsien Loong

SINGAPORE/KUALA LUMPUR (Reuters) - and said on Friday a deal to build a high-speed rail (HSR) link between the two neighbours will be terminated, after a suspension period to negotiate terms of the long-delayed project expired on Dec. 31.

First announced in 2013, the project linking Kuala Lumpur to has been estimated by analysts to cost around $17 billion.

It was suspended in 2018 shortly after former Malaysian prime minister Mahathir Mohamad came to power with a pledge to tighten finances and review major deals made by his predecessor Najib Razak.

In May, the suspension was extended another six months to allow discussion of changes to the project.

had proposed several changes to the project but was unable to reach an agreement with on them, according to a joint statement from Malaysian Prime Minister Muhyiddin Yassin and Singapore Prime Minister

"Both countries will abide by their respective obligations, and will now proceed with the necessary actions, resulting from this termination of the HSR agreement," said the statement, released by Muhyiddin's office.

Separately, Singapore's transport ministry said has to compensate it for costs incurred in fulfilling its obligations under the agreement.

The countries did not state how much Malaysia would have to pay.

Construction on the rail link had been scheduled to commence in May 2020, with operations to begin in January 2031.

Companies from China, Japan, South Korea and Europe had expressed interest in winning contracts to build, operate and finance the trains and rail assets, people close to the bidding process previously told Reuters.

 

 

 

(Reporting by Aradhana Aravindan in Singapore and Rozanna Latiff in Kuala Lumpur; Editing by Kim Coghill)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, January 01 2021. 08:37 IST
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