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Dr Mahathir Mohamad has confirmed that Putrajaya's decision to scrap the Kuala Lumpur-Singapore High-Speed Rail (HSR) project is final.
At a press conference today, the prime minister also said that he was informed that the penalty for withdrawing from the agreement is almost RM500 million. The exact compensation figure would be confirmed at a later date.
The HSR is a 350-km railway scheme linking Kuala Lumpur and Singapore and is expected to start operations from 2026.
Shorten the travel distance between Malaysia and Singapore by one hour, Mahathir sees HSR as unnecessary project.
The project would cost Malaysia RM110bn ($28bn) and Mahathir is expected to talk to Singapore about dropping the project.
Given this current development, MyHSR Corp Sdn Bhd – the firm responsible for the development and implementation of the project – is expected to be dissolved in the near future.
Previously, MyHSR Corp announced the appointment of two project delivery partners (PDPs) for the project to oversee the civil works worth a combined RM30bil-RM40bil.
The contracts were secured by the joint ventures (JVs) of Malaysian Resources Corp Bhd and Gamuda Bhd (MRCB-Gamuda JV) and YTL Corp’s Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd and TH Properties Sdn Bhd (YTL-THP JV), a subsidiary of pilgrim fund Lembaga Tabung Haji.
