SINGAPORE (Sept 3): Singapore hopes to reach a mutually acceptable outcome soon on the High Speed Rail (HSR) project linking Kuala Lumpur with the republic, according to Singapore’s Ministry of Transport.

The ministry’s spokesperson noted that both sides were currently in discussions on Malaysia’s request to defer the project.

“We hope to reach a mutually acceptable outcome soon,” the spokesperson said in an email reply to Bernama today.

The ministry was asked to respond to a report that Malaysia and Singapore had agreed to postpone the project to a future date.

Malaysian Economic Affairs Minister Datuk Seri Mohamed Azmin Ali was earlier today reportedly as saying that the decision was made with regard to Malaysia's current economic situation.

He said Singapore has agreed with the Malaysian government's views to delay the implementation of the project until the economy recovered.

Mohamed Azmin said the decision was reached after a series of talks with the Singapore government, and an agreement was reached that Malaysia would not have to pay any compensation to Singapore during the deferment period.

“At the end of the deferment period, if it is cancelled, only then we will need to pay. After the deferment period, we are confident of continuing with the project.

“We will also continue to discuss how we can reduce the cost of the project, possibly by adopting new technologies or looking at other aspects," he said.

Mohamed Azmin was here last week to continue the discussion on the HSR project with Singapore Minister for Transport Khaw Boon Wan.