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Malaysia seeks to extend suspension of HSR project

May 29, 2020 | 🚀 Fathership
Malaysia has asked for a further suspension of the proposed Kuala Lumpur-Singapore High-Speed Rail project, ahead of a May 31 deadline to decide whether to proceed with it.

A deal was negotiated to suspend the project instead as a cancellation would have entailed a high amount of compensation under the HSR agreement signed between the two countries.

Malaysia had paid Singapore $15 million for the abortive costs the Republic incurred as a result of the project being suspended.

Speaking in Parliament in October 2018, Mr Khaw had said that a suspension beyond two years would mean current cost estimates would likely be no longer valid, and affect the viability of the project and its business case.

Should the HSR project be terminated, Malaysia would have to reimburse the project implementation costs incurred by Singapore up to the point of suspension.