It's official.

Malaysia will proceed with the construction of the Johor Bahru-Singapore Rapid Transport System (RTS), Malaysia's Prime Minister Mahathir Mohamad announced on Oct. 31, according to CNA.

What's more, the cost of the project will be cut by 36 per cent of its original cost, from RM4.93 billion (S$1.6 billion) to RM 3.16 billion (S$1.03 billion).

Key revision to project is the Sultan of Johor's involvement

Separately, the Malaysian federal government in Putrajaya stated that a key revision to the project's structure was the involvement of the owner of Bukit Chagar -- that is, the Sultan of Johor -- in waiving the land's cost.

The government noted that this made the project financially viable when coupled with optimised costs in construction and rail systems.

Bukit Chagar is the site of where the RTS will connect to in Johor Bahru.

Earlier in May, the Sultan had stated that he was willing to let go of the land at no cost, on the condition that the RTS project continue immediately.

Project approved on Oct. 18

The Malaysian federal government added that the Cabinet eventually gave its approval for the project on Oct. 18.

Prior to the approval being granted, Mahathir had stated on Oct. 17: "We will proceed with the RTS but we will take some time."

The Straits Times further reported that both countries are currently in discussions to refine proposals by Malaysia regarding changes to the project's structure, specifications and scope.

Malaysia's national rail operator to remain as project's joint venture partner

Malaysia's Transport Ministry also announced on the same day that its national rail operator, Prasarana, will remain as the joint venture partner for the project.

Prasarana will now meet with SMRT to settle the details of the joint venture.

CNA further highlighted that a joint venture company consisting of SMRT and Prasarana had been originally scheduled for formation in June 2018.

Additionally, the appointment of this particular company as the RTS Link operator was to have been done by Sep. 30, 2018, via a concession agreement between Singapore's Land Transport Authority and the Malaysian government.

Malaysian transport minister slams The Star for misleading news on six-months extension

The announcement by Mahathir was preceded by an earlier hullabaloo in the morning, in which Malaysia's Transport Minister Anthony Loke slammed Malaysia media The Star for reporting that Malaysia is seeking yet another six-month extension to review the Rapid Transit System (RTS) Link project.

The Star reported that the request for a six-month deadline had supposedly been made known to Singapore on Oct. 28, 48 hours before the deadline of Oct. 31.

In May 2019, the RTS was officially suspended at Malaysia’s request, until Sep. 30.

As part of the suspension, Malaysia had to reimburse Singapore over S$600,000 in abortive costs.

In Sepember 2019, Malaysia requested a further extension of the deadline to Oct. 31, which Singapore granted.

The extra time was given without Singapore making any financial demands over the delay in the project.

Top image collage from Mahathir Facebook and LTA