Malaysia agreed to reimburse Singapore in project abortive costs as part of the agreement in continuing the much-anticipated Johor Bahru-Singapore Rapid Transit System (RTS) Link that was stalled in May.
According to Channel News Asia, the Malaysian government agreed to pay around S$600,000 to cover the project's abortion costs. Aside from completing the payments, the two sides also agreed to proceed with the RTS Link under slashed costs.
Before the confirmation came on Thursday, industry experts have been waiting for updates on the project since it was stalled due to traffic congestion issues along the Causeway.
With Malaysian Prime Minister Mahathir Mohamad's green light, the link that was estimated to cost around RM3.16 billion or S$1.03 billion, will finally come to life.
Singapore's Ministry of Transport (MOT) said Thursday evening that it "welcomes Malaysia's decision to proceed with the project." The ministry also revealed that talks are now up on how costs can be reduced without depreciating the RTS Link's quality.
Finally, the MOT noted that it will take time before all discussions are completed and officially inked since the revival includes amendments to the previous deal. The ministry added, though, that it is hard at work in getting the discussions sealed.
Malaysia's minister of transport, Anthony Loke, confirmed that his country has formally submitted a proposal to the Singaporean government for review. The proposal recommends reduced expenses and cheaper fare fees for commuters who will benefit from the project.
Reuters reported that tensions have been on and off between Malaysia and Singapore over the past years, with the countries having different stands regarding congestion. Mahathir, in particular, argued that a new road bridge would help resolve congestion problems but Singapore disagreed.
The world's oldest-living Prime Minister pointed out that his country has been helping support Singapore's water demand but the city-state has been difficult to deal with regarding traffic congestion issues.
Despite their differences, Malaysia and Singapore have been trying to expand their ties in various sectors, not just in infrastructure and rail links. Earlier this month, Singapore Airlines (SIA) and Malaysia Airlines Bhd signed a cooperative deal.
The two airlines released optimistic statements about the partnership that seeks to provide customers from both sides with improved services and flight offers. Under the agreement, the airlines will offer joint fare products.
The airlines also agreed to boost tourism between Singapore and Malaysia long-term, as part of the Malaysian government's target of expanding deeper bilateral ties with other Asian nations.
