This article first appeared in The Edge Financial Daily on September 30, 2019

KUALA LUMPUR: Decision on the Johor Baru-Singapore Rapid Transit System Link (RTS Link) has been deferred by another month to Oct 31, said Malaysia’s ministry of transport (MoT) yesterday.

Singapore previously agreed to suspend construction of the project until today, Sept 30, on the request of Malaysia, who wanted time to decide if it intended to proceed with the project or propose changes to it. A supplemental agreement was signed between Malaysia and Singapore to effect that on May 21.

At the time, Malaysia had to reimburse Singapore about RM2 million for work already done on the RTS Link that it could not recoup, whether the project is restarted or terminated.

In a statement yesterday, the MoT said: “Malaysia and Singapore have agreed to extend the deadline to decide on the RTS Link project by a period of one month to Oct 31 without any additional costs.”

Originally meant to be completed by end-2024, the 4km rail link that connects Bukit Chagar in Johor Baru to Woodlands in Singapore is expected to ferry up to 10,000 passengers per hour, one way.

Malaysia has been hesitant about the RM4 billion project since the new Pakatan Harapan government took over and announced the country had over RM1 trillion worth of debts and liabilities as at end-2017. If Malaysia decides to terminate the project, it would have to pay Singapore about S$66 million or RM200 million.

The Straits Times in Singapore wrote on Saturday that Malaysia’s Transport Minister Anthony Loke had told his Singaporean counterpart Khaw Boon Wan during a recent meeting that Malaysia needed more time to review the project. Singapore’s decision to grant the extension was reportedly conveyed to Malaysia last Friday.

“If there is any further extension sought, Singapore will reserve the right to make backdated claims for damages after work on the project was suspended,” a source was quoted as saying.

Besides the RTS Link, Malaysia has also suspended the Kuala Lumpur-Singapore high-speed rail project with Singapore’s agreement, as it reassessed the mega infrastructure projects the previous government had committed to. The estimated RM110 billion project has been deferred till May 2020.

Meanwhile, Malaysia has renegotiated with China for a one-third reduction in the cost of the East Coast Rail Link (ECRL) to RM44 billion from RM65.5 billion previously. Suspended in July last year, the ECRL has since been revived following China’s agreement to the new price tag.