While Malaysia has been going on in the media about the need to cancel the joint Singapore-Malaysia High Speed Rail (HSR) project, the Singapore government has not received any official reply from Mahathir's new government on the fate of the HSR.

This piece of information was revealed in Parliament on July 9, 2018 by Transport Minister Khaw Boon Wan.

Following the various media statements by Mahathir and his ministers, Singapore sent a diplomatic note to Malaysia to request for an official statement on Malaysia's statement on the HSR, but has not received any to date.

Malaysia' Economic Affairs Minister Azmin Ali's promise for both countries' officials to meet to discuss the project has also failed to materialise. 

"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,” said Khaw. 

Delay in reply means more costs incurred

Since the project's conception until May 2018, Singapore has spent more than $250 million on the HSR. This amount covers consultancies to design the civil infrastructure, manpower costs to oversee and deliver the project, and land acquisition.

This amount is set to snowball. Singapore is expected to spend at least $52 million from June to end-2018 on the HSR as Singapore is "performing in accordance with the bilateral agreement".

Khaw said that the HSR bilateral agreement with Malaysia "provides for how compensation is to be dealt with".

Malaysia's delay in issuing an official reply could mean more compensation for the additional costs incurred should they ultimately decide to cancel the project.

"It will be most unfortunate, if Malaysia has in fact decided to terminate, but delays in notifying us, because there will be further wasted expenditure, " said Khaw. 

Aside from Singapore, other interested rail consortia bidders in the HSR project are also incurring costs in preparing their bids for the project. These bidders hail from China, Japan, and Europe and are urgently awaiting clarification from Singapore and Malaysia on the issue.

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It is in "Malaysia's interest to officially inform us of its position"

Khaw also mentioned that it is in "Malaysia’s own interest to officially inform us of its position on the HSR project early on to minimise the amounts involved”.

“The Singapore Government will continue to press for official clarification from the Malaysian Government. There are appropriate processes at law in case Malaysia should wish to propose changes to the bilateral agreement, or to terminate it,” Khaw added.

“These due processes should be followed. If the Malaysian government fails to provide an official response, then we cannot ignore the public statements made by the Malaysian ministers, and Prime Minister Dr Mahathir himself, on the termination of the project, and Singapore will act according to its rights."

"We can recover value for some of the expenditure, even if the HSR project does not proceed. But a significant amount which has been spent, will be completely wasted expenditure, if the project does not proceed," noted Khaw.

(Editor's note: The article has been amended to reflect that Minister Khaw's statement in Parliament occurred on July 9, not June 9, 2018.)

Top image is an artist impression of the Jurong Terminus of the HSR by Farrell.