RTS suspension only to review agreement

KUALA LUMPUR: The additional six months requested by Malaysia for the Johor Baru-Singapore Rapid Transit System (RTS) Link is only to review important parts of the agreement that need to be amended, says Transport Minister Anthony Loke (pix).

He said the government requested the extension to also ensure the three agreements can undergo the necessary amendments before being signed by next April 30.

“As we announced before, the government has decided to continue with the RTS with amendments to the scope and structure of the project. Both Malaysia and Singapore will appoint a consultant to conduct a study on engineering aspects,” he told reporters at the Parliament lobby here today.

The three agreements in question are the joint venture agreement, the concessionaire agreement and the bilateral agreement.

On news that the RTS project will proceed with a 36% cost reduction, Loke said savings would be made from Bukit Chagar to the international border in Singapore following contributions from landowners in the area, including the Johor Sultan.

On Oct 31, Prime Minister Tun Dr Mahathir Mohamad said the new cost estimate for the project would be about RM3.16 billion, or 36% less compared with the original amount of RM4.93 billion under the previous government.

The initial six-month grace period approved by Singapore expired on Sept 30. This was followed by another one-month extension granted by the republic.

Singapore Transport Minister Khaw Boon Wan on Nov 4 then said Malaysia had asked to suspend the RTS project for a third time until April 30, 2020.

Mahathir then announced that the government had decided to proceed with the project, but did not mention its request to extend the suspension period.

Khaw said Singapore had agreed to the six-month suspension in the spirit of bilateral cooperation.

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