Malaysia-Singapore light rail project back on track, $880 mln deal in end-July

Construction of a $880 million light rail project linking Malaysia’s southern state of Johor with neighboring Singapore will begin next year, after both countries formalize the deal on July 30, Malaysia’s transport minister said on Tuesday.

The Rapid Transit System (RTS) Link, as the project is known, was suspended last year after the former Malaysian administration led by Mahathir Mohamad pledged to tighten finances and review major deals.

The countries had earlier this year agreed to a July 31 deadline to finalize the project, after talks were hit by movement restrictions to contain the spread of the coronavirus pandemic.

Malaysia’s Transport Minister Wee Ka Siong said the agreement will be signed on the Johor Causeway -- the main thoroughfare for land traffic between Malaysia and Singapore -- in a brief ceremony to be witnessed by both prime ministers.

“Our expectation is by the end of 2026, we will see the start of RTS operations between Johor Bahru and Singapore,” Wee said at a news conference in parliament.

Wee said the total cost of the project would be 3.75 billion ringgit ($880.28 million), including the construction of a maintenance depot which was not included in the earlier estimate.

Singapore is paying 61percent of the costs and Malaysia 39 percent, a transport official said.

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Both sides have an agreed text on the changes to the project for presentation to both governments for approval, Singapore’s transport minister Khaw Boon Wan said in a post on his Facebook page, adding that a venue for the signing of the deal was being discussed.

Mahathir had said in October that the project cost was cut by a third from about 4.93 billion ringgit to 3.16 billion ringgit after discussions between both countries.

In March, a new Malaysian government led by Prime Minister Muhyiddin Yassin was sworn in after Mahathir’s sudden resignation.