Singapore, Malaysia scrap high speed railway plan

SINGAPORE－Singapore and neighboring Malaysia have scrapped plans for a high-speed rail line after failing to agree on changes, officials said on Friday, finally abandoning a costly and long-troubled project.

The 350-kilometer rail network was expected to cut travel time between Singapore and the Malaysian capital Kuala Lumpur to 90 minutes from the four hours by car today.

Singapore and Malaysia signed a deal to build the bullet train line in 2016, but its fate was thrown into doubt after the election of Malaysian prime minister Mahathir Mohamad two years later.

Mahathir said he wanted to scrap the project in an effort to review major infrastructure projects approved by his scandal-tainted predecessor.

Construction was then halted for two years at Malaysia's request, with plans to commence service in 2031.

The project was terminated after a final deadline on Thursday after both governments failed to reach a deal over changes proposed by Malaysia.

"In light of the impact of COVID-19 pandemic on the Malaysian economy, the government of Malaysia had proposed several changes to the HSR Project," said a joint statement by current Malaysian Prime Minister Muhyiddin Yassin and Singaporean Prime Minister Lee Hsien Loong.

Malaysia must compensate Singapore for costs already incurred by the city-state in accordance with the agreement, Singapore's Ministry of Transport said in a news release, without mentioning a figure.

Malaysia may have to pay as much as 500 million ringgit ($125.7 million) in compensation if the project is scrapped, Mahathir previously said.

He had estimated the railway would cost Malaysia around 110 billion ringgit in 2018.

Agencies Via Xinhua