Considerations for Singapore’s Agreement to Malaysia’s Request to Postpone High-Speed Rail Project
- Singapore agreed to Malaysia’s request to suspend the High-Speed Rail project for two years until May 2020 in the spirit of bilateral cooperation, though it could have enforced the original agreement and sought compensation.
- The suspension will push the project’s completion to 2031 and incur abortive costs of S$15 million, which Malaysia will reimburse by January 2019.
- If Malaysia does not resume the project by May 2020, it will be deemed terminated, and Malaysia must reimburse Singapore for all project implementation costs incurred up to the suspension.
- Singapore remains open to discussions with Malaysia on reducing costs during the suspension but is not obliged to accept any proposed changes.
- Staff working on the HSR project will be redeployed to other MRT-related projects in Singapore during the suspension to utilize their skills.