Malaysia has paid Singapore RM320.27 million ($102.82 million) as compensation for the suspension of the Kuala Lumpur-Singapore High Speed Rail (HSR) project on March 29.
The amount is some RM20 million higher than the figure of RM300 million that was released by sources on Dec 24, 2020.
According to the statement jointly released by Singapore’s Minister for Transport and Malaysia’s Minister in the Prime Minister’s Department (Economy), the amount was for costs incurred for the development of the project and for the extension of the suspension of the project.
Both countries reached an “amicable agreement” on the amount following a verification process conducted by the Malaysian government.
The amount represents a “full and final settlement” in relation to the termination of the bilateral agreement.
See: Malaysia to go it alone with HSR project, pay RM300m compensation to Singapore — source and KL-Singapore HSR project terminated after both countries fail to reach agreement
“Both countries remain committed to maintaining good relations and fostering close cooperation for the mutual benefit of the peoples of the two countries,” reads the statement.
In a statement released on the evening of March 29, the Ministry of Transport has clarified that the $270 million that the Singapore government has spent on the HSR project included land acquisition cost, compared to the $102 million that Malaysia has provided as compensation.
"Because Singapore Government can recover value from the land we acquired, we are not seeking compensation for it," says a spokesperson from the Ministry of Transport.
"For example, one piece of land acquired will be used to develop the Integrated Train Testing Centre, which broke ground recently."
"For the final compensation amount of $102 million, the bulk of it was computed and determined when we acceded to Malaysia’s request to suspend the project, and was stipulated in the HSR agreements."