KUALA LUMPUR: The fate of the RM110 billion Kuala Lumpur-Singapore High Speed Rail (HSR) project hinges on the meeting Economic Affairs Minister Datuk Seri Mohamed Azmin Ali is expected to have with Singapore by the end of the month.
“Any party that wants to cancel the project can do so because it is allowed by the agreement, but it must be based on the terms and agreement. All options including reducing the cost, cancelling the project or deferring it, are available to us. So we will table it and discuss with them.
“(However) we have not excluded the possibility of the project going on, but are not making any suggestions unless there is a consensus from both countries,” Mohamed Azmin told reporters at the Dewan Rakyat lobby, here, today.
He said Singapore's Transport Minister Khaw Boon Wan wanted to meet by the end of the month and he will try his best to accommodate the request.
The meeting is to discuss options on the HSR project which was expected to be completed in 2024.
The project which was initially reported to be scrapped due to its high cost may be reconsidered by the government if its cost can be reduced by half.
Asked about compensation to Singapore that has reportedly spent more than S$250 million on the project, Mohamed Azmin said Malaysia would respect the rule of law and due process, as well as terms contained in the agreement, but it will be subject to his discussion with Khaw.
“There is a formula but the actual quantum has to be determined by both parties,” Mohamed Azmin added while declining to state what the formula was.
Earlier, former Prime Minister Datuk Seri Najib Razak told the House that the government should not have calculated the costing as the deadline for the open tender only ends on Dec 28 this year.
Mohamed Azmin explained that calculations were made by the Finance Ministry and the ministry found hidden cost not revealed earlier by the previous government.
He later told reporters that there are different packages in the project such as the cost of land acquisition done by Singapore, and government guarantees for procurement of trains by Assetco, under the agreement.
“So we cannot only look at the cost of the project, there are other elements that would be determined by the parties, and discussed further. There are costs not revealed before, and learnt only later. We are open and transparent, and we must make sure that all costs must be disclosed to determine our capacity to review or otherwise,” Mohamed Azmin added.