KUALA LUMPUR: Malaysia and Singapore have agreed to terminate the Kuala Lumpur-Singapore High Speed Rail (HSR) project.
Both nations have expressed their commitment to abide by their respective obligations and proceed with the necessary actions resulting from the termination.
The HSR agreement between both nations lapsed at midnight on Dec 31, 2020, which was the deadline for the second and final extension of the suspension of the project.
It was reported that the construction of the HSR project had been suspended since Sept 2018 and was due to resume at the end of May 2020, but was deferred further until the end of last year.
Prime Minister Tan Sri Muhyiddin Yassin and his Singaporean counterpart Lee Hsien Loong, in a joint statement today, affirmed that both nations remain committed to maintaining good bilateral relations and cooperating closely in various fields, including strengthening connectivity between the two countries.
"In light of the impact of the Covid-19 pandemic on the Malaysian economy, the government of Malaysia had proposed several changes to the HSR Project.
"Both governments had conducted several discussions with regard to these changes and had not been able to reach an agreement.
"Therefore, the HSR agreement lapsed on Dec 31," read the joint statement released by the Prime Minister's Office.
The 350km-long HSR line was expected to reduce travel time between Kuala Lumpur and Singapore to 90 minutes.