HSR deferred two years; Malaysia spared penalty payment to Singapore: Report

• Malaysia and Singapore have reportedly struck an accord on the deferment of the Singapore-Kuala Lumpur High Speed Rail (HSR) project, with the agreement expected to be formally announced this week.
• The compromise reached “in a spirit of good neighbourliness”, will see Malaysia being spared having to pay a MYR500mn penalty for postponing the project, reported The Edge in its 3 Sep 18 issue, citing sources.
• According to the business publication, the 350km line will be deferred for two years, until 31 May 20.
• Malaysia’s Economic Affairs Minister Mohamed Azmin Ali on 3 Sep 18, confirmed the agreement has been reached with Singapore.
• The minister told reporters that the consensus with his Singapore counterpart was reached last week after a series of meetings, and that an official agreement would be signed in the near future in Kuala Lumpur.
• He said during this period, both governments would hold more talks on ways to reduce the cost of the multi-billion ringgit project.
• According to The Edge, the original deal to build the HSR, which was signed in 2016, did not contain provisions for a postponement.
• Malaysia would have faced up to MYR500mn in penalties, had it decided to terminate the project in breach of the agreement, said the report.

External Link: https://www.straitstimes.com/asia/se-asia/hsr-deferred-two-years-malaysia-spared-penalty-payment-to-singapore-report