Friday 29 Mar 2024
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KUALA LUMPUR (Aug 19): Transport Minister Anthony Loke Siew Fook has updated that Malaysia has reached "some sort of an understanding" with Singapore on the deferred Johor Bahru-Singapore Rapid Transit System (RTS).

Speaking to reporters at the sidelines of the 4th Annual China-Malaysia Port Alliance (CMPA) Meeting here today, Loke said both governments are currently working "behind the scenes" to iron out the details of the arrangement.

"We know that the RTS is important and we are currently working behind the scenes. In fact, I met with Singapore Transport Minister Khaw Boon Wan last month, and we have some sort of an understanding.

"But we need to work out the details, and once we work out the details we will make an announcement soon," he said.

It was announced in May that the RTS project would be deferred for six months until a decision is made on Sept 30. During the period, the Malaysian government is to conduct a feasibility study on the project to determine whether it will be beneficial to the country.

Malaysia, which requested the deferment, would be required to pay Singapore RM2 million in abortive costs.

If Malaysia decides to not proceed with the RTS project by Sept 30, the government will also bear the undisclosed agreed costs incurred by Singapore in fulfilling the project's bilateral agreement.

The new Pakatan Harapan government, as it came into power back in May 2018, requested the deferment as it claimed that the contract — agreed to in early 2018 by the previous Barisan Nasional administration — was overpriced and that there was some evidence of corruption.

Hence, like the East Coast Rail Link (ECRL) project, where the government managed to slash RM21 billion from the original cost, the government is seeking to reduce the costs for the RTS project. The project was initially scheduled for construction this year, to be completed by December 2024.

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