(Bloomberg) -- Malaysia's new government has called into question the future of multibillion-dollar rail projects since Mahathir Mohamad took power in May. Now it appears to be ready to proceed with at least one.
The Malaysian cabinet has given in-principle approval for a rail project linking Johor Baru in the southernmost tip of the country with Singapore, Malay Mail Online said in a report citing Transport Minister Anthony Loke. It is still looking at costs and other details.
This project was delayed by two months due to the general elections, which saw Mahathir become prime minister. A known Singapore critic, Mahathir has wanted to cancel a proposed multi-billion dollar high-speed railway connecting the city state to Kuala Lumpur as it was too expensive while saying it may happen in the future.
Mahathir's stance prompted Singapore's Transport Minister Khaw Boon Wan to tell parliament on July 9 that his government will seek compensation for all costs incurred if Malaysia cancels the 350-kilometer railway link between the two countries.
For now, it seems to be a go for the 4-kilometer rail line, which will be able to transport 10,000 travelers in one direction every hour between Singapore and Johor Baru. The two neighbors will set up a joint company for the project after the full approval is given by Malaysia.
- Related stories:
- July 19, Mahathir says KL-Singapore High-Speed Rail Must be Deferred
- May 29, Mahathir to Scrap Malaysia-Singapore High-Speed Rail Project
- May 15, How Sworn Enemies Toppled Najib But Pose a New Risk to Malaysia
To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Niluksi Koswanage, Yudith Ho
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