PUTRAJAYA (Sept 5): Malaysia and Singapore governments have agreed to suspend the RM110 billion Kuala Lumpur-Singapore High-Speed Rail (HSR) project until end-May 2020.

In a joint statement today, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali and Singapore Minister of Transport Khaw Boon Wan said Malaysia will bear the agreed costs in suspending the project.

"If by May 31, 2020, Malaysia does not proceed with the HSR project, Malaysia will also bear the agreed costs incurred by Singapore in fulfilling the HSR Bilateral Agreement. During the suspension period, Malaysia and Singapore will continue to discuss the best way forward for the HSR project with the aim of reducing costs," they said.

"With this, the HSR Express Service between Singapore and Kuala Lumpur is expected to commence by Jan 1, 2031, instead of the original commencement date of Dec 31, 2026. Given the length of the suspension, Singapore and Malaysia's Infrastructure Companies, SG HSR Pte Ltd and MyHSR Corporation Sdn Bhd, will be calling off the ongoing international joint tender for the HSR Assets Company.

"The ministers reaffirmed the mutual benefits of the HSR project as it will bring both countries closer together by improving connectivity, deepening people-to-people ties and catalysing further economic cooperation," they added.