Malaysia pays Singapore $102.8m as compensation for HSR project
Malaysia has paid Singapore about $102.8 million as compensation for the costs it incurred in the failed high-speed rail (HSR) project.
In a joint statement yesterday, Singapore's Transport Minister Ong Ye Kung and Malaysia's Minister in the Prime Minister's Department (Economy) Mustapa Mohamed said the two countries have finalised the settlement of compensation for the terminated project.
Malaysia has paid $102,815,576 (RM320,270,519.24) to Singapore for costs incurred in the development of the project and for a further extension of the initial two-year suspension.
"The two countries reached an amicable agreement on the amount following a verification process by the government of Malaysia.
"This amount represents a full and final settlement in relation to the termination of the bilateral agreement," said the joint statement.
"Both countries remain committed to maintaining good relations and fostering close cooperation for the mutual benefit of the peoples of the two countries."
In a Facebook post, Mr Ong said: "I am glad we were able to close this chapter amicably, without affecting the good bilateral relations between our two countries.
"Looking ahead, there are many areas that we have opportunities to cooperate on.
"These include the issues Minister Vivian Balakrishnan discussed with leaders in Malaysia last week, such as the restoration of some air travel, which the Ministry of Transport will be very involved in, and also commuting via the Causeway."
The planned 350km rail line, which both sides agreed to build in 2013, was to have run from downtown Kuala Lumpur to a terminal in Jurong East.
The HSR would have cut travel time between Kuala Lumpur and Singapore to 90 minutes, compared with around four hours by car. - THE STRAITS TIMES
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