KL-Singapore High-Speed Rail: Malaysia pays ‘abortive costs’

Construction of the Kuala Lumpur-Singapore High-Speed Rail project has been postponed until end-May 2020. (Bernama pic)

PETALING JAYA: Malaysia has paid the Singapore government “abortive costs” incurred for the postponement of the Kuala Lumpur-Singapore High-Speed Rail (HSR), Channel NewsAsia reported.

The Singapore transport ministry announced this today without revealing any details of the amount.

The ministry’s spokesperson said the republic has “received confirmation from the government of Malaysia through diplomatic correspondence” about the remittance.

Both countries had postponed the construction of the HSR until end-May 2020.

Channel NewsAsia said Malaysia has to pay Singapore S$15 million (RM45.6 million) for costs incurred to suspend the project.

The fast-train service was expected to begin in 2031, instead of the original date of Dec 31, 2026.

The HSR was one of the projects reviewed when the Pakatan Harapan government took over from the Barisan Nasional after the May 9 general election.

Singapore Transport Minister Khaw Boon Wan had told Parliament last October that suspending the project was not without costs to the republic.

The country will have to pay contractors for terminating ongoing contracts and to wind down operations safely for the period of suspension.