“We have informed the Malaysian government that Singapore is continuing to incur costs on this project as it awaits Malaysia’s clarification.
“In the event Malaysia terminates the project, Singapore will study the implications and exercise our rights (including any right to compensation for expenses incurred) in accordance with the terms of the HSR Bilateral Agreement,” he said in a statement today.
Khaw said Singapore had agreed to Malaysia’s proposal for a high-speed rail link to Singapore in 2013, because “we were convinced of the benefits of the project to Singapore.”
“We still believe that a high-speed rail link between Singapore and Kuala Lumpur would be in our mutual interest, economically as well as in terms of the friendship and mutual understanding of our two peoples,” he said.
Khaw, who is also the Coordinating Minister for Infrastructure, noted that Singapore continues to support the HSR project and will fulfil all its obligations under the Agreement.
“However, it is only tenable to continue the project if Malaysia likewise supports it, and is willing to fulfil its end of the agreement. Singapore looks forward to being informed of Malaysia’s position on the matter,” he said.
Earlier this week, Malaysia’s Prime Minister Dr Mahathir Mohamad said the project would be cancelled, subject to discussions with Singapore because of the huge financial implications of the project costs, and that Malaysia would have to compensate the republic up to RM500 million for aborting the project.