PUTRAJAYA should revive the Kuala Lumpur-Singapore high-speed rail (HSR) project after controversially authorising the Trans Sabah Gas Pipeline (TSGP) and Multi-Product Pipeline (MPP) projects, Lim Guan Eng said. 

The former finance minister expressed shock following the government’s decision to revive the scandalous RM9.4 billion TSGP and MPP projects where 88% or RM8.3 billion of the construction value was paid even though only 13% of unaudited work was done. 

“Questions will also be raised as to why the HSR project was not similarly revived. The government needs to come clean on the cause of this scandal of paying 88% for only 13% of unaudited work done, and the form of action taken against those responsible in the interest of transparency and accountability,” said the Bagan MP. 

Lim said the revival of these projects have turned the spotlight on Malaysia paying S$102.8 million (RM320 million) in the form of compensation paid to Singapore for aborting the HSR project.

“Many questioned the wisdom of the government terminating the HSR project by stopping only in Johor Baru and not Singapore, as well as paying RM320 million loss in compensation cost despite its earlier public promise to continue with the HSR project,” he said. 

“The HSR project is not financially viable if its rail line does not pass through to Singapore but stops in Johor Baru.”  

The rail project was axed on January 1, with Malaysia having to pay Singapore RM320 million in compensation as part of its obligations under the bilateral agreement. 

The two countries reached an amicable agreement on the amount following a verification process by the Malaysian government. 

This amount represents a full and final settlement in relation to the termination of the bilateral agreement on the HSR project on December 31 last year, Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed and Singapore’s Transport Minister Ong Ye Kung said in a joint statement in March. 

The project was signed in 2016 but frozen in 2018 after Pakatan Harapan (PH) won the general election. The new government had asked for and received a deferral of two years from Singapore, paying S$15 million for the favour. 

The Perikatan Nasional government, which replaced PH in March last year, then asked for an extended deferment, which Singapore agreed to until December 31 last year. 

Putrajaya made its decision not to go ahead with the project two weeks before the deadline. The plan now is to proceed with the rail link but with the track ending in Johor. – October 23, 2021.