High Speed Rail delay unlikely to impact Singapore-Malaysia ties

Romesh Navaratnarajah24 Oct 2018

Artist's impression of the HSR terminus in Jurong East crop

Artist’s impression of the HSR terminus in Jurong East.

The decision to defer the construction of the Singapore-Kuala Lumpur High Speed Rail (HSR) until May 2020 is unlikely to cause a strain between the relationship of both countries, reported Bernama.

According to Malaysia’s Economic Affairs Minister Datuk Seri Mohamed Azmin Ali, the postponement to a reasonable time was mutually agreed. It was not a one-sided move.

“I can understand the concern expressed by Singapore Prime Minister Lee Hsien Loong in the event both countries can’t achieve any resolution or any agreement on that particular project.”

“But, now, we have reached a decision in a cordial manner. We look forward to resuming the project in 2020 and that was agreed to by both parties,” he told reporters on Tuesday (23 Oct).

Search for properties near the future High Speed Rail terminus in Jurong.

PM Lee had previously said the decision on the HSR could have been a thorny issue between Singapore and Malaysia. But both sides managed to constructively settle it, ultimately consenting to a two-year postponement of the project.

Meanwhile, Malaysian Prime Minister Mahathir Mohamad said on Monday (22 Oct) that the federal government can slash its debt by over RM300 billion ($99.27 billion) if it terminates four large-scale projects.

These consist of the HSR and East Coast Rail Line (ECRL) plus two pipeline projects, namely the Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP).

Mr Mahathir also blasted the prior Malaysian administration for undertaking mega developments without first ensuring that the government had sufficient funds.

“If we did not have enough money, we determined how much was the debt level (and) how much could be repaid from the return on investment; that’s the best way,” he added.

Interested in buying property near the future High Speed Rail terminus in Jurong? Check out our step-by-step guide to buying a condo.


Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg


You may also like these articles

3 reasons why scrapping the HSR project may be bad for Jurong

Artist's impression of the HSR terminus in Jurong East.The growth prospects of Jurong’s property market may have dimmed after Malaysia’s new Prime Minister Dr Mahathir Mohamad on Monday (28 May) s

Continue Reading31 May 2018

Singapore and Malaysia agree to postpone High Speed Rail project

Artist’s impression of the HSR terminus in Jurong East.While many may be disappointed, Singapore and Malaysia’s agreement to postpone the development of the Kuala Lumpur-Singapore High-Speed Rail

Continue Reading6 Sep 2018

Jurong property prices not affected by High Speed Rail delay

Artist's impression of a High Speed Rail train. Market experts do not expect the deferment of the Kuala Lumpur-Singapore High Speed Rail (HSR) project to significantly affect property prices within th

Continue Reading7 Sep 2018