SINGAPORE — May 21, 2019: Malaysia and Singapore today officially signed the supplemental agreement to suspend the Rapid Transit System (RTS) link until September 30, with the former agreeing to reimburse Singapore about RM2 million by July 31 as abortive costs.
Transport Minister Anthony Loke and his Singapore counterpart Khaw Boon Wan sealed the agreement here. A bilateral agreement on the RTS was signed in January last year.
According to Loke, under the original agreement the one-way fare was set at RM15 and this would burden some Malaysians who travel daily to Singapore to work. The project was initially scheduled for construction this year and expected to be completed by December 2024.
The RTS is over 4 kilometres of rail linking Bukit Chagar in Johor Baru and Woodlands in Singapore, with a capacity to ferry 10,000 passengers per hour.
Khaw said Malaysia would have to pay more than S$66 million (RM200 million) should it choose to terminate the project, reported Bernama.
Loke declined to put any figure on how much cost saving Malaysia is looking at.
The minister expressed his appreciation of Singapore’s support and understanding on the challenges faced by Malaysia in implementing the project.
“We recognise the urgent need to alleviate traffic congestion on the Causeway which has about 300,000 crossings daily affecting approximately 250,000 Malaysians.
The supplemental agreement will allow Malaysia some time to explore other affordable and sustainable solutions to address traffic congestion, including improvements to the physical infrastructure at the border, a review of inter-boundary policies and regulations and enhancing the quality of cross-border services.