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Malaysia may revisit HSR project with Singapore in the future: finance minister

Source: Xinhua| 2018-06-01 21:11:54|Editor: mmm
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MALAYSIA-PUTRAJAYA-FINANCE MINISTER-LIM GUAN ENG-HSR?

Malaysian Finance Minister Lim Guan Eng speaks during a briefing with foreign media at the Ministry of Finance in Putrajaya, Malaysia, June 1, 2018. Malaysian Finance Minister Lim Guan Eng said on Friday that terminating the high speed rail (HSR) link between Kuala Lumpur and Singapore does not mean it cannot be revisited in the future, days after Prime Minister Mahathir Mohamad axed the project citing high debt level. (Xinhua/Chong Voon Chung)

PUTRAJAYA, Malaysia, June 1 (Xinhua) -- Malaysian Finance Minister Lim Guan Eng said on Friday that terminating the high speed rail (HSR) link between Kuala Lumpur and Singapore does not mean it cannot be revisited in the future, days after Prime Minister Mahathir Mohamad axed the project citing high debt level.

Lim made the remarks during a briefing with the foreign media at the Ministry of Finance in Putrajaya. When asked about whether he is aware of the costs already incurred by the Singaporean government, Lim said he understands the sensitivity of cancelling the project and the costs that have been incurred, but "it's a choice we are compelled to make in order to restructure our debts, to make sure we do not mortgage the future of our children."

"(we are) Terminating this project so that it can be revisited in the future," said Lim, adding that Malaysia needs to ensure the financial architecture for this project is fair for Malaysia when revisiting the project.

Lim also confirmed that Mahathir's estimated costs of the HSR project, at 110 billion ringgit (27.6 billion U.S. dollars), is legitimate when adding up interest costs. "110 billion ringgit is a bit conservative," he said. The figure has been repudiated by former Prime Minister Najib Razak.

Malaysia will have to pay the Singaporean government a hefty penalty after withdrawing from the legally-binding agreement signed in 2016, possibly as high as 500 million ringgit (125.4 million U.S. dollars). But Mahathir has said he will seek ways to reduce the penalty.

Lim also said Mahathir is personally handling the future negotiations with Singapore.

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