Pay RM45.1 million first. Delay 2 years but completion date now 2031?

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The postponement of the HSR KL – SG is now inked. It will now only start construction in end-May 2020 and the new date for the commencement date will be Dec31 2031. (DELAYED by 5 years) For this delay, Malaysia will pay Singapore US$15million (RM45 million). This postponement agreement was signed by Malaysia’s Economic Affairs Minister Azmin Ali and Singapore’s Transport Minister Khaw Boon Wan at the Prime Minister’s Office in Putrajaya on Wednesday afternoon. Additionally, if Malaysia does not proceed with the project by May 31, 2020, it will also bear the agreed costs incurred by Singapore in fulfilling the HSR Bilateral Agreement. It was reported earlier that the Singapore Government had spent more than S$250 million on the project as at May 2018. (Yes, if the postponement becomes cancellation, there are still a huge cost to pay)

Joint statement says this, “During the suspension period, both countries will “continue to discuss the best way forward for the HSR project with the aim of reducing costs.” Azmin said, “We have all worked tirelessly in order to bring about a resolution that is mutually beneficial. Without doubt, this agreement would not have happened if not for our strong commitment to bilateral cooperation between our two countries.” Khaw said, “Many Singaporeans had been looking forward to the realisation of this project and we remain committed to this project.” However, he said he understood why Malaysia had to suspend the development of the HSR. With this suspension, the Singapore and Malaysia companies managing the rail project – SG HSR and MyHSR – will be calling off the ongoing international joint tender for the HSR Assets Company (AssetsCo) AssetsCo was meant to be responsible for designing, building, financing and maintaining all rolling stock as well as rail assets such as power, signalling and telecommunications. Please refer to the article in Channelnewsasia here. 

I hope everyone realises that the HSR KL – SG is not a project which will compete with the airlines (as per so many analysts….) or compete with the expressways (many say Singaporeans who wants to travel to cities and towns in Malaysia could just drive). It is to create new demand. Here’s that earlier article:Focus on new demand, not just the existing one. Another thing I do not understand however is that the commencement date was postponed to 5 years later from 2026 even though the starting of the project was only delayed by TWO years. Hopefully, someone high up could explain this as well. By the way, the Malaysian economy continues to be doing just fine and is NOT going to go bankrupt anytime soon. Well, I am just a blogger who hopes the HSR could have been completed earlier and not delayed. Just have to follow as the things happen. At the mean time? I could drive lah but very few Singaporeans have cars… Get the hint? Happy following.

written on 6 Sept 2018

Next suggested article: HSR’s RM864 million expenditure by Singaporean side by Dec 2018


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