Photo of Mahathir with Lee Hsien Loong from AFP

Malaysia Prime Minister Mahathir Mohammad has confirmed in an interview with Malaysian media that the High Speed Rail exstension project for Singapore will be terminated. The Malaysian leader said the government is in debt currently and they have no money for the lucrative train project in Singapore:

“Malaysia is going to look into how it can reduce the cost of any potential exit from a deal with Singapore for a high-speed rail (HSR) to link its capital Kuala Lumpur with the city-state. There is the need to reduce the national debt and liabilities – which is at around RM1trillion or 80 per cent of its GDP. At one go we can reduce it by RM200 billion by doing away with all these huge projects.”

Malaysian PM Mahathir said that he is looking at how to minimise the cost of breaking the HSR contract with Singapore.

“The terms of the HSR agreement are such that if we decide to drop the project, it will cost us a lot of money. So we are going to find out how we can reduce the amount of money we have to pay for breaking the agreement.”

As such, the Malaysian HSR will hence terminate at Johor Bahru.  For Malaysia, if PM Mahathir is able to find any corrupted dealings between Najib Razak and Singapore, they may be able to dissolve the HSR agreement without paying compensation to Singapore.


Singapore’s Prime Minister Lee Hsien Loong visited Mahathir in his Putrajaya residence last week, only to be shown the door out in less than 30 minutes.

Upon the cancellation of the HSR, there will be lesser justification for the 2% GST increase in Singapore, which the PAP government claimed is for building infrastructural projects like the HSR. The Singapore government is currently in debt, borrowing from it’s state-owned companies and statutory boards, to fund it’s exorbitant projects like Terminal 5 and Tuas Mega Port.