The KL-Singapore High Speed Rail (HSR) project has supposedly been deferred for two years until May 31, 2020, with no penalty imposed on Malaysia, The Edge reported on Monday, September 3.

The report also said the compromise was reached in a "spirit of good neighbourliness", and that Singapore understood the financial strain the project could put on Malaysia.

Quoting an anonymous source, the Malaysian financial weekly added:

"It is worth noting that the legally binding agreement between the two nations for the project, signed in 2016, contains no provisions for such a postponement."

The Straits Times and Lianhe Zaobao also reported off The Edge's findings.

Previously in May, Malaysia's Prime Minister Mahathir Mohamad said Malaysia could face a penalty of up to RM500 million (~S$166 million) should the deal be dropped.

Mothership has reached out to the Ministry of Transport (MOT) for clarifications on the report.

Put on hold "indefinitely"

Later on the same day, however, The Star reported that Malaysia's Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said the project "is on hold indefinitely".

He added "there is no need to pay compensation during this period".

Channel 8 News also reported on Azmin's comments.

In early August, Azmin made statements to the media claiming he had met a senior official from Singapore to discuss the HSR. He retracted that claim subsequently.

Ministers met to discuss HSR

Last Thursday, August 30, Azmin met with Singapore's Transport Minister Khaw Boon Wan to negotiate the HSR project, following an earlier meeting in Putrajaya.

Khaw said they "should be able to announce [their] joint decisions on both the HSR and Rapid Transit System (RTS) projects soon".

Mahathir first announced in May the new Pakatan Harapan (PH) government's plans to scrap the project, citing heavy costs that Malaysia could not afford at the moment.

He later backtracked and said on June 11 that Malaysia would seek a postponement instead.

S'pore's position on HSR

Unlike the 1962 Water Agreement which is "sacrosanct" and cannot be negotiated, there is room for negotiation for infrastructure projects should both countries agree.

In his National Day Rally Speech on August 19, Prime Minister Lee Hsien Loong said:

"Both sides have to carry out what has been agreed to, unless we mutually agree to vary the terms."

 

Top image of artist's impression of the HSR station in Johor via MyHSR