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Malaysia and Singapore suspend construction of high-speed rail line

Posted: 7 September 2018 | | No comments yet

The HSR Project was expected to bring both countries closer together with improved connectivity, better journeys and economic cooperation.

Malaysia

The governments of Malaysia and Singapore have signed a bilateral agreement, meaning construction of the Kuala Lumpur-Singapore High Speed Rail (HSR) Project has been officially suspended, potentially until 31 May 2020.

The Kuala Lumpur-Singapore HSR project envisaged a 330km double track line and eight stations, and was estimated at $6 billion.

The suspension was at Malaysia’s request and Singapore agreed through a bilateral cooperation.

Therefore, Malaysia will bear the agreed suspension costs, and if by May 2020 Malaysia does not proceed with the HSR project, they will be contractually obliged to bear the costs incurred by Singapore in fulfilling the HSR Bilateral Agreement.

During the suspension period, Malaysia and Singapore will continue to discuss how to progress the HSR project with the aim of reducing costs.

It is expected that the HSR Express Service between Singapore and Kuala Lumpur will commence by 1 January 2031, instead of the original commencement date that was 31 December 2026.

Unfortunately, due to the length of suspension, Singapore and Malaysia’s Infrastructure Companies, SG HSR Pte. Ltd. and MyHSR Corporation Sdn. Bhd., will be calling off the ongoing international joint tender for the HSR Assets Company.

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