NOT unexpectedly, the Minister in the Prime Minister’s Department Mustapa Mohamed has cited a non-disclosure clause that does not allow Putrajaya to reveal how much it is compensating Singapore for the cancellation of the transboundary high-speed rail (HSR) project. 

According to Mustapa, who is also the minister in charge of economic affairs, Singapore has yet to state how much it seeks in recompense. 

That may be so, but in July 2018, the state’s then minister for transport Khaw Boon Wan revealed in Parliament the cost incurred by the Singapore government by end of May 2018. It was in his oral answers to parliamentary questions asking for updates on the HSR.

He said: “Mr Speaker, when Malaysia proposed the HSR Project to Singapore in 2013, Singapore agreed because we were convinced of the benefits of the Project to Singapore. After several years of discussion, Singapore and Malaysia signed the HSR bilateral agreement in December 2016. This bilateral agreement is an international treaty that is binding on the countries that signed it. In other words, both Singapore and Malaysia are legally bound to perform our obligations under the bilateral agreement, regardless of any changes in the Government.

“After signing the bilateral agreement, Singapore acquired land to facilitate the construction of the HSR, passed legislation in Parliament, and set up an infrastructure company, SG HSR Pte Ltd under Land Transport Authority (LTA). We have formed a team of more than 100 specialists in the company to build, own, fund and maintain the HSR civil infrastructure in Singapore.

“All these works cost money, including costs for consultancies to design the civil infrastructure, costs for dedicating manpower to oversee and deliver the Project, and costs for land acquisition. Based on preliminary estimates, the total cost incurred by the Singapore Government for the HSR Project has already exceeded S$250 million by the end of May 2018. This is actual money that has already been spent, our taxpayers’ money.”

The minister, who retired from politics in June 2020, then added:

“If the HSR Project is terminated because of the actions of country A, then country A should compensate country B for expenses that have already been incurred by country B, in accordance with the bilateral agreement. It would not be fair for the taxpayers of one country to bear the cost of another country’s actions. Compensation is not a penalty imposed on the other country.

“Thus, should Malaysia cause the HSR Project to be terminated, we will deal with the question of compensation from Malaysia for costs incurred by Singapore in accordance with the bilateral agreement and international law. The Singapore Government has a duty to all Singaporeans to be accountable for the substantial public funds spent on the HSR Project.” 

It must be said that the Malaysia government too has a duty to all Malaysians to be similarly accountable.

According to The Malaysian Insight’s sources, the estimated compensation is about RM300 million. 

As they say in Malay, “bertuah lah” if the compensation is RM300 million.

But whether it is RM300 million or RM760 million (based on the total cost incurred of S$250 million and current exchange rate) every sen should be accountable to tax-paying Malaysians.

It is their money. – January 4, 2021.

*Hafiz Hassan reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.