PUTRAJAYA will proceed with the rapid transit system project at a new cost of RM3.16 billion, said Dr Mahathir Mohamad.

The prime minister said this is RM1.77 billion, or 36%, less than the 4km link’s original price tag of RM4.93 billion.

“We will go ahead with the project, which will help ease traffic congestion. The details will be discussed with the Singapore government,” he told a press conference in Johor Baru today.

On October 18, the Transport Ministry received the cabinet’s nod to continue with RTS with changes to the project’s structure, scope and route specifications.

Malaysia and Singapore last year signed a bilateral agreement to build the cross-border link, stretching from Woodlands in the republic to Johor’s Bukit Chagar, to alleviate the Causeway’s traffic woes.

Its two stations, at Woodlands North and Bukit Chagar, will have co-located Singaporean and Malaysian Customs, Immigration and Quarantine facilities.

Initially targeted for completion by December 31, 2024, RTS will be the second rail link between the countries, after KTM’s Shuttle Tebrau service.

Meanwhile, the Transport Ministry, in a statement, said the savings were made possible because the cost of the Bukit Chagar land was waived by the owner.

“Coupled with the optimised costs of construction and rail systems, the government has achieved substantial savings, hence, making the project more financially viable.”

Officials from the two countries will now refine the project’s structure and specifications as stated in the bilateral agreement.

The terms of the joint-venture operating company to undertake the project are also being finalised, with Malaysia represented by Prasarana Malaysia Bhd and Singapore by rail company SMRT.

The project will be implemented by Mass Rapid Transit Corporation Sdn Bhd or its subsidiary.

Initially, RTS had been suspended for six months, from April 1 to September 30. It was then put off for another month, till today, pending negotiations. – October 31, 2019.