A multi-the multi-million dollar high-speed rail link between Singapore and Kuala Lumpur, the capital of Malaysia, has been closed.
The two countries were unable to reach an agreement on the project after Malaysia sought changes due to 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 suspension, which was first discussed a decade ago and given the green light in 2013. In June , residents of Southeast Asia had agreed to put the development, which has already incurred several suspensions, is suspended again amid a discussion about costs.
The 350-kilometer (218-mile) high-speed rail link would again have reduced travel time between centers by up to about 90 minutes compared to more than four hours by car. Although flying between the two only takes about an hour, it is much longer once you check in at check-in and airport security. The service was scheduled to begin in 2026.
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“In view of the impact of the Covid-19 pandemic on the Malaysian economy, the Malaysian government had proposed several changes to the HSR project,” according to the joint statement of Prime Minister Muhyiddin Yassin and Prime Minister Lee Hsien Loong. “Both governments had held several discussions about these changes and had not been able to reach an agreement.”
Local media in Malaysia reported in November that Malaysia was considering ending the line in the southern city of Johor Bahru instead of in Singapore.
The administration of former Malaysian Prime Minister Mahathir Mohamad, who resigned in February, tried to cancel the project as the country faced debts and liabilities worth more than a trillion ringgit ($ 249 billion), before settling for a deferral and $ 15 million. ($ 11.4 million) in compensation in Singapore.
Mahathir had estimated at one stage that the project would cost about 110 billion ringgit for Malaysia.
“Both countries will fulfill their respective obligations and will now proceed with the necessary actions resulting from this resolution of the HSR Agreement,” the joint statement said.
– With the assistance of Tien Hin Chan and Hadi Azmi
(Updates with details of the joint statement in the fifth, last paragraph.)