AN multi-The billion-dollar high-speed rail link between Singapore and the Malaysian capital, Kuala Lumpur, has been closed.
The two countries were unable to reach agreement on the project after Malaysia sought changes because of the economic impact of the pandemic, according to a joint statement on Friday. Malaysia will have to compensate Singapore for the costs already incurred, the city-state transport ministry said in a separate statement.
The announcement came just after the December 31 deadline for the second and final extension of the project’s suspension, which was first discussed a decade ago and was given the green light in 2013. In June, Southeast Asian neighbors agreed to place the development, which has already suffered multiple suspensions, was again suspended amid a discussion over costs.
The 350 km (218 miles) high-speed rail link, on and off, would have reduced the travel time between the centers to about 90 minutes, compared to more than four hours by car. Although the flight between the two takes only about an hour, it is much longer after check-in at the airport and security are taken into account. The service was due to start in 2026.
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“In light of the impact of the Covid-19 pandemic on the Malaysian economy, the Malaysian government has proposed several changes to the HSR project,” according to the joint statement by Prime Minister Muhyiddin Yassin and Prime Minister Lee Hsien Loong. “Both governments have had several discussions regarding these changes and have not been able to reach an agreement.”
Local media in Malaysia reported in November that Malaysia was considering closing the line in its southern city of Johor Bahru instead of Singapore.
The administration of former Malaysian Prime Minister Mahathir Mohamad, who resigned in February, sought to cancel the project while the country struggled with debt and liabilities of more than 1 trillion ringgit ($ 249 billion), before settling for a postponement. and a ($ 11.4 million) compensation fee for Singapore.
At one stage, Mahathir estimated that the project would cost Malaysia around 110 billion ringgit.
“Both countries will fulfill their respective obligations and will now proceed with the necessary actions, resulting from this termination of the HSR Agreement,” said the joint statement.
– With the help of Tien Hin Chan and Hadi Azmi
(Updates with details of the joint statement in the fifth, last paragraphs.)