Malaysia could have to pay over $200 million compensation to Singapore for scrapping railway plan

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Singapore will try to recover costs incurred for a rail project with Malaysia, which have exceeded 250 million Singapore dollars ($184 million) and are still growing, if the new government in Kuala Lumpur confirms it has cancelled the project, officials said on July 9, both Reuters and Bloomberg News reported.

Malaysian Prime Minister Mahathir Mohamad has said he was cancelling the high speed rail project to link Kuala Lumpur with Singapore. He said Malaysia would talk to its southern neighbour about any compensation it had to pay.

Singapore’s transport minister Khaw Boon Wan told parliament on that compensation would be sought under the terms of the 2016 high-speed rail bilateral agreement between Singapore and Malaysia.

There has been no reply to Singapore’s diplomatic note sent on June 1 to seek Malaysia’s position on the project even as costs incurred continues to rise quickly, he said.

“We will deal with the question of compensation from Malaysia for costs incurred by Singapore in accordance with the bilateral agreement and international law,” Khaw said, adding that Singapore expected to incur costs of around 300 million Singapore dollars ($221.5 million) by the end of the year.

“The public statements made by the Malaysian ministers, and Prime Minister Dr Mahathir himself, on the termination of the project have not been followed through with any official communications to us,” Khaw said.

Thus, Singapore has been “left with no choice” but to continue with its end of the agreement, the minister added.

 

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Reading Time: 1 minute

Singapore will try to recover costs incurred for a rail project with Malaysia, which have exceeded 250 million Singapore dollars ($184 million) and are still growing, if the new government in Kuala Lumpur confirms it has cancelled the project, officials said on July 9, both Reuters and Bloomberg News reported.

Reading Time: 1 minute

Singapore will try to recover costs incurred for a rail project with Malaysia, which have exceeded 250 million Singapore dollars ($184 million) and are still growing, if the new government in Kuala Lumpur confirms it has cancelled the project, officials said on July 9, both Reuters and Bloomberg News reported.

Malaysian Prime Minister Mahathir Mohamad has said he was cancelling the high speed rail project to link Kuala Lumpur with Singapore. He said Malaysia would talk to its southern neighbour about any compensation it had to pay.

Singapore’s transport minister Khaw Boon Wan told parliament on that compensation would be sought under the terms of the 2016 high-speed rail bilateral agreement between Singapore and Malaysia.

There has been no reply to Singapore’s diplomatic note sent on June 1 to seek Malaysia’s position on the project even as costs incurred continues to rise quickly, he said.

“We will deal with the question of compensation from Malaysia for costs incurred by Singapore in accordance with the bilateral agreement and international law,” Khaw said, adding that Singapore expected to incur costs of around 300 million Singapore dollars ($221.5 million) by the end of the year.

“The public statements made by the Malaysian ministers, and Prime Minister Dr Mahathir himself, on the termination of the project have not been followed through with any official communications to us,” Khaw said.

Thus, Singapore has been “left with no choice” but to continue with its end of the agreement, the minister added.

 

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