SINGAPORE — Singapore and Malaysia signed an agreement on Wednesday (Sept 5) to suspend the Kuala Lumpur-Singapore High Speed Rail (HSR) project for a period of two years.

The decision to suspend the construction of the project, some four months after the Pakatan Harapan (PH) government came to power, was made after a period of negotiations and mixed signals in recent months.

Here is a recap of the developments:

Feb 19, 2013
Prime Minister Lee Hsien Loong and his then Malaysian counterpart Najib Razak announced an agreement to build a high-speed rail (HSR) link between Kuala Lumpur and Singapore. The announcement was made at the conclusion of the biennial Singapore-Malaysia Leaders’ Retreat.

July 19, 2016
Singapore and Malaysia signed a seven-point agreement which, among other things, had a roll-out date in 2026 for the HSR service. Points of agreement include the locations of the six transit stations between the two terminus stations at Bandar Malaysia in Kuala Lumpur and Jurong East in Singapore, which will be part of a domestic rail service, on top of the express service.

May 28, 2018

Newly elected Malaysian Prime Minister Mahathir Mohamad said Putrajaya would drop the HSR project as part of drastic cuts to government spending and investment. The project would “cost us RM110 billion (S$37 billion) and will not earn us a single cent”, he said. The decision was “final”, Dr Mahathir claimed.

June 1

Singapore sent a diplomatic note to Malaysia seeking clarification on its position on the HSR project. At the same time, Singapore Transport Minister and Coordinating Minister for Infrastructure Khaw Boon Wan said the Republic will study the implications and exercise its rights, including compensation for expenses incurred should Malaysia proceed to cancel the HSR.

June 11

In an interview, Dr Mahathir was quoted saying the HSR project has not been cancelled but merely postponed.

July 9

Mr Khaw said in Parliament that Singapore continues to incur cost on the project, with expenditure expected to hit some S$300 million by year-end.

July 18

Malaysian Economic Affairs Minister Azmin Ali said his country has not excluded the possibility that the HSR project could go ahead.

July 19

Dr Mahathir reiterated that Malaysia will look to negotiate the deferment of the HSR project with Singapore. "The problem is that if we just unilaterally discard the agreement, we have to pay a very high compensation, he said. Having studied the contract, it was decided that “we will have to do it at a later date or we may have to reduce the price”.

July 20

Singapore's Ministry of Transport (MOT) said it had asked Putrajaya to clarify its official position in writing by July 31 and to indicate, also by that date, if it still wished to hold bilateral talks on the project. It later received a letter from Mr Azmin dated July 23, where he said that the Malaysian government was “studying the details of the HSR project and will commence discussions with Singapore soon”.

Aug 6

Mr Azmin claimed he had informally met with several officials in Singapore to discuss the HSR when he visited cabinet colleague Muhyiddin Yassin who was then hospitalised in the Republic.

However, Singapore's MOT said no meeting was scheduled, nor has taken place between Mr Azmin and Singapore officials overseeing the HSR project. Mr Azmin later denied meeting with Singapore officials.

Aug 14

Singapore’s MOT confirmed Mr Khaw met with Mr Azmin on Aug 11 but did not disclose details of what was discussed. However, it said discussions on the HSR will continue “in the coming weeks”.

Aug 30

Mr Khaw said Singapore and Malaysia will announce their “joint decisions” on the future of the HSR soon.

Sept 3

Mr Azmin claimed that the HSR will be postponed "for a period of time" without the need for compensation. But this was not confirmed by Singapore's MOT, which said that discussions were ongoing. “We hope to reach a mutually acceptable outcome soon,” MOT said. 

Sept 5

Singapore and Malaysia inked an agreement to formally suspend the project for nearly two years.