“At the moment, we don’t have the funds. So if need be, we will put the project on hold,” he told reporters outside the Dewan Rakyat.
This followed Singapore’s statement earlier this month that it would seek RM743 million in compensation if the project was cancelled.
Mahathir said Economic Affairs Minister Mohamed Azmin Ali would renegotiate the project with the republic.
“Singapore wants to know the status of the project and our stance on the matter. But when we look at our financial situation, we cannot implement it.
“We need to study the implications and review the contract and cost of the project. We either have to postpone the project or reduce the cost, but it is difficult to bring down the cost.”
In May, Mahathir said Putrajaya would pull out of the HSR agreement with Singapore as it was an “unnecessary project”.
Singapore later said it was still waiting for official notification of Malaysia’s position on the project.
Yesterday, Azmin revealed that the overall cost of the project stood at RM110 billion, not between RM54 billion and RM74 billion as projected by the previous government.
He said this was because the Barisan Nasional administration had not included the hidden costs.