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Singapore and Malaysia terminate high-speed rail project.


Singapore and Malaysia terminated a multibillion dollar high-speed rail project after the two countries failed to reach agreement after Kuala Lumpur sought changes because of the economic impact of the current pandemic.

The train line would have connected the 350 km stretch between the two capitals in just 90 minutes. The on-off project, first given the green light in 2013 under the leadership of former Malaysian Prime Minister Najib Razak, was intended to boost cross-border business and development of areas along the track. Railway-related manufacturers and operators from Japan, China and Europe expressed interest in the project.

But after Mahathir Mohamad became prime minister in 2018, Malaysia requested the suspension of the mega infrastructure project as part of the government's fiscal reforms. The two governments suspended the project in September that year.

A local think tank in Singapore had estimated that that the project would cost more than 20 billion Singapore dollars ($15 billion).

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