Dr M: Malaysia to look at ways to lower compensation to Singapore if HSR dropped

(The Star) – The Malaysian government will find out how it can reduce the amount of money it has to pay to Singapore if it needs to drop the Kuala Lumpur-Singapore high-speed rail (HSR) project, said Prime Minister Tun Dr Mahathir Mohamad.

“The terms and agreement for the HSR are such that if we decide to drop the project, it would cost us a lot of money. We have entered into an agreement with Singapore. If we break the agreement, we have to pay a very large sum of money,” he told The Edge weekly.

The 350km rail deal between Singapore and Malaysia was inked in 2016 under previous prime minister Datuk Seri Najib Tun Razak, but Dr Mahathir had said after his coalition swept into power on May 9 that it would be reviewed, alongside a number of other mega projects.

The new Malaysian government is looking at ways to cut costs drastically to pare its debt of RM1 trillion.

In early May, MyHSR Corp chief executive Mohd Nur Ismal Mohamed Kamal estimated that Malaysia could lose RM209 billion in gross national income if the HSR was scrapped.

The 350km HSR will have a proposed seven stops – Bandar Malaysia, Bangi-Putrajaya, Seremban, Melaka, Muar, Batu Pahat, and Iskandar Puteri in Malaysia, and Jurong East in Singapore.

Another rail project under review is the East Coast Rail Link (ECRL) which is expected to cost another RM66 bilionl and connect the country’s east and west coasts.