SINGAPORE has spent more than S$250 million (RM750 million) on the high-speed rail (HSR) project as of May, Transport Minister Khaw Boon Wan told Parliament today.

Since a significant amount has been spent, it will be “completely wasted expenditure if the project does not proceed”, he said.

Despite sending a diplomatic note to Malaysia on June 1 to seek clarification on its position on the HSR project, Singapore has yet to receive a reply, Khaw added.

“At this point, therefore, we have been left with no choice but to continue performing in accordance with the bilateral agreement, and thus continue to incur more costs,” he said.

Singapore expects to incur more than S$6 million in costs for July, with these set to “increase rapidly with time”, adding that the country will need to spend at least S$40 million more from August to end-December 2018.

The amount spent thus far covers the costs for consultancies to design the civil infrastructure, costs for dedicating manpower to oversee and deliver the HSR project, and costs for land acquisition, said Khaw.

“This is actual money that has already been spent, our taxpayers’ money. We can recover value for some of the expenditure, even if the HSR project does not proceed.

“But a significant amount which has been spent, will be completely wasted expenditure, if the project does not proceed.”

He added that “it will be most unfortunate, if Malaysia has in fact decided to terminate but delays in notifying us, because there will be further wasted expenditure.”

He said it was Malaysia that had suggested building the HSR and Singapore agreed to the joint project.

Should Malaysia decide to terminate the project, both nations will have to address the issue of compensation from Malaysia for costs incurred by Singapore in accordance with the HSR bilateral agreement and international law.

“It would not be fair for the taxpayers of one country to bear the cost of another country’s actions,” said Khaw.

“The Singapore government has a duty to all Singaporeans to be accountable for the substantial public funds spent on the HSR project.”

Weeks after the new Pakatan Harapan government was elected on May 9, Prime Minister Dr Mahathir Mohamad said his government has decided to scrap the HSR project in an attempt to reduce the country’s burgeoning debt.

But Dr Mahathir reportedly later said his government intends to postpone the project and will speak to its Singapore counterparts.

Saying that the costs that Singapore have incurred will add to the total amount of compensation, “it is in Malaysia’s own interest to officially inform us of its position on the HSR project early, to minimise the amounts involved”, said Khaw.

The issue has been raised to Malaysia’s Economic Affairs Minister Azmin Ali, who called Khaw on June 6, with the Malaysian official suggesting that both parties meet to discuss the project.

Aside from the costs incurred by Singapore, rail consortia from China, Japan, Europe and other interested parties, such as international financial institutions, have also been incurring costs because they prepared bids for the HSR Assets Company tender, jointly launched by Singapore and Malaysia last December. – todayonline, July 9, 2018.