Malaysia Pays RM320 Million To Singapore Over KL-Singapore HSR Termination

March 30, 2021

Malaysia Pays RM320 Million To Singapore Over KL-Singapore HSR Termination

Malaysia has paid Singapore RM320.27 million ($102.8 million) for the costs incurred for the cancelled Kuala Lumpur-Singapore High-Speed Rail (HSR) project’s development as well as for the extension of its suspension.

This comes after Malaysia and Singapore reached an amicable agreement on the compensation amount, after a verification process made by Malaysia, reported Bernama.

In a joint statement issued on Monday (29 March 2021), Malaysia’s Minister in the Prime Minister’s Department (Economy) and Singapore’s Minister for Transport said the amount represents a final and full settlement in relation to the bilateral agreement’s termination on 31 December 2020.

They added that the two countries remain committed to maintaining good relations as well as fostering close cooperation for the mutual benefit of the peoples of both countries.

Besides Bandar Malaysia, There Are 5 Transit-Oriented Developments (Tod) You Need To Check Out, Find Out Here!

In responding to queries on the difference between the $270 million spent by Singapore on the project and the amount paid by Malaysia, Singapore’s Ministry of Transport explained that the $270 million included land acquisition cost.

The ministry said it is not seeking compensation for the land acquisition cost since it can still be recovered by the government.

“For example, one piece of land acquired will be used to develop the Integrated Train Testing Centre, which broke ground recently,” said the ministry’s spokesperson as quoted by Bernama.

The ministry added that the bulk of the $102 million compensation was determined and computed when Singapore agreed to Malaysia’s request to suspend the project.

Singapore’s Minister for Transport Ong Ye Kung previously said that the city-state had spent over $270 million on the HSR project.

“Some of these costs, such as for consultancy services, design of infrastructure, and manpower to deliver the project, are abortive costs if the project does not proceed,” he said in Parliament.

 

Have a question about the property market? Post them on AskGuru and let our experts help you!

POST COMMENT

You may also like these articles

HSR Postponed Until 2020

 Sources revealed that the government of Malaysia and Singapore have agreed to postpone the High Speed Rail (HSR) connecting the city-state with Kuala Lumpur for two years until 31 May 2020, repo

Continue ReadingSeptember 3, 2018

Malaysians Remain Optimistic On HSR Despite Deferment

 Residents of Malaysian towns, where the Singapore-Kuala Lumpur High Speed Rail (HSR) would pass through, remain optimistic despite the cancellation of the mega project, reported TODAYonline.For

Continue ReadingSeptember 24, 2018

Malaysia Explores Proposals To Reduce KL-SG HSR Cost

In view of the country’s goals of reducing debt and ensuring an economically viable project, Malaysia is looking at proposals to reduce the Kuala Lumpur-Singapore High Speed Rail (HSR) project cost.

Continue ReadingApril 10, 2019

KL-Singapore HSR Project’s Deferment Extended To 31 December

The governments of Singapore and Malaysia have agreed to extend the deferment of the Kuala Lumpur-Singapore High Speed Rail (HSR) project to 31 December 2020.This comes after Malaysia has informed Sin

Continue ReadingJune 1, 2020

Malaysia Expects Singapore’s HSR Claim By End-January

Malaysia expects to receive Singapore’s Kuala Lumpur-Singapore High-Speed Rail (KL-Singapore HSR) compensation claim in the next few weeks.“Currently, we are still waiting for Singapore to submit

Continue ReadingJanuary 11, 2021

Feedback