Singapore-Kuala Lumpur high-speed train project is not going to happen

Malaysia and Singapore have cancelled a high-speed rail project that would have connected the two cities on a 350-kilometer track, bringing down travel time to 90 minutes versus more than four hours by car.

The announcement came just after a December 31 deadline for the second and final extension of the suspension of the project, which was first presented a decade ago and given the green light in 2013.

The administrations of the two countries could not reach an agreement on technical details and the contract was cancelled at the Malaysian side’s request, the Malaysian government said in a statement.

$75 million as compensation payable to Singapore

Malaysia will compensate Singapore for the cancellation, the government added. Reportedly, Malaysia would have to pay more than $75 million as a termination fee for the project which would have cost up to $27 billion at time of cancellation.

“In light of the impact of Covid-19 pandemic on the Malaysian economy, the government of Malaysia had proposed several changes to the high-speed rail project,” the joint statement by Malaysia’s Prime Minister Muhyiddin Yassin and his Singapore counterpart Lee Hsien Loong read.

 “Both governments had conducted several discussions with regard to these changes and had not been able to reach an agreement,” it said.

The cancellation would not affect ties between the two countries, the Singapore government said in a statement and emphasised that the two nations will continue to be in close cooperation since they have deep and multifaceted relations.



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Malaysia and Singapore have cancelled a high-speed rail project that would have connected the two cities on a 350-kilometer track, bringing down travel time to 90 minutes versus more than four hours by car. The announcement came just after a December 31 deadline for the second and final extension of the suspension of the project, which was first presented a decade ago and given the green light in 2013. The administrations of the two countries could not reach an agreement on technical details and the contract was cancelled at the Malaysian side's request, the Malaysian government said in a statement....

Malaysia and Singapore have cancelled a high-speed rail project that would have connected the two cities on a 350-kilometer track, bringing down travel time to 90 minutes versus more than four hours by car.

The announcement came just after a December 31 deadline for the second and final extension of the suspension of the project, which was first presented a decade ago and given the green light in 2013.

The administrations of the two countries could not reach an agreement on technical details and the contract was cancelled at the Malaysian side’s request, the Malaysian government said in a statement.

$75 million as compensation payable to Singapore

Malaysia will compensate Singapore for the cancellation, the government added. Reportedly, Malaysia would have to pay more than $75 million as a termination fee for the project which would have cost up to $27 billion at time of cancellation.

“In light of the impact of Covid-19 pandemic on the Malaysian economy, the government of Malaysia had proposed several changes to the high-speed rail project,” the joint statement by Malaysia’s Prime Minister Muhyiddin Yassin and his Singapore counterpart Lee Hsien Loong read.

 “Both governments had conducted several discussions with regard to these changes and had not been able to reach an agreement,” it said.

The cancellation would not affect ties between the two countries, the Singapore government said in a statement and emphasised that the two nations will continue to be in close cooperation since they have deep and multifaceted relations.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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