RTS suspension: Singapore to claim any additional cost incurred beyond Sept 30

By Massita Ahmad

SINGAPORE, Sept 30 – Singapore today said it reserved the right to claim any additional cost incurred beyond Sept 30, 2019, should Malaysia request any further extensions of the suspension period on the Johor Bahru - Singapore Rapid Transit System (RTS) Link Project.

Malaysia’s Ministry of Transport yesterday informed that both countries have agreed to extend the deadline to decide on the project by a period of one month to Oct 31, 2019, without any additional cost.

“In the spirit of bilateral cooperation, Singapore has agreed to Malaysia’s request for an additional one-month suspension,” said the republic’s Ministry of Transport in a statement as a response to media queries on the RTS Link Project.

“Singapore has also agreed to waive the additional cost incurred by Singapore during the one-month period arising from Malaysia’s request, but reserves the right to claim any additional cost incurred beyond Sept 30, 2019, should Malaysia request any further extensions of the suspension period,” it said.

The supplemental agreement to suspend the project from April 1, 2019, until Sept 30, 2019, was signed by Malaysia’s Minister of Transport, Anthony Loke and Singapore’s Coordinating Minister for Infrastructure and Minister for Transport, Khaw Boon Wan on May 21, 2019.

According to the agreement, Malaysia would reimburse Singapore about RM2 million by July 31, 2019, as abortive costs incurred as a result of the six-month suspension.

A bilateral agreement on the RTS Link was signed in January last year during the previous Barisan Nasional administration.

Under the original agreement, the one-way fare was set at RM15 and would burden some Malaysians who travel daily to Singapore for work.

The project was initially scheduled for construction this year and expected to be completed by December 2024. It was aimed at addressing congestion in the daily commute between the two countries.

The RTS Link Project would cover 4km of rail linking Bukit Chagar (Johor Baru) and Woodlands (Singapore), with the capacity to ferry 10,000 passengers per hour.

Malaysia would have to pay more than S$66 million (RM200 million) should it choose to terminate the project.

-- BERNAMA