ECONOMIC Affairs Minister Mohamad Azmin Ali and Singapore’s Transport Minister Khaw Boon Wan will sign a side letter to allow for the deferment of the Singapore-Kuala Lumpur high-speed railway (HSR) project today, according to a statement issued by the Economic Affairs Ministry.

The new document, which will be inked at the Prime Minister’s Office in Putrajaya, amends the original agreement between the two countries, which did not have provisions for deferment.

Malaysia and Singapore had recently reached a compromise, sparing Malaysia from having to pay a RM500 million penalty for postponing the project, The Edge had reported on Monday.

Singapore’s Deputy Prime Minister Teo Chee Hean, who had arrived in Kuala Lumpur yesterday accompanied by the republic’s Foreign Minister Vivian Balakrishnan, will witness the signing ceremony today with Prime Minister Dr Mahathir Mohamad and Dr Wan Azizah Wan Ismail.

Dr Mahathir had announced in May that the HSR, originally slated for completion in 2026, would be scrapped.

He later softened its stance, saying Putrajaya would negotiate with Singapore and seek a deferment on the project.

Kuala Lumpur estimated the project would cost RM110 billion, an expenditure it said it cannot afford as it tackles RM1 trillion in national debt.

Singapore’s Khaw had revealed in Parliament in July that Singapore had already spent more than S$250 million (RM748 million) on the HSR project, and is likely to expend another S$40 million by the end of the year.

The rail line was expected to cut travel time between Singapore and KL from the current four hours by car to 90 minutes.

The line was to have eight stations: the Jurong East station in Singapore, and on the Malaysian side – Bandar Malaysia, Sepang-Putrajaya, Seremban, Melaka, Muar, Batu Pahat, and Iskandar Puteri. – September 5, 2018.