Malaysia to sign RM3.75b RTS deal with Singapore on July 30

The construction of an RM3.75 billion light rail project linking Johor with Singapore will begin next year after both countries formalise the deal on July 30, Transport Minister Wee Ka Siong said.

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

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

Wee 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 Baru and Singapore," Wee said at a news conference in Parliament.

Wee said the total cost of the project would be RM3.75 billion, including the construction of a maintenance depot which was not included in the earlier estimate.

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

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 RM4.93 billion to RM3.16 billion after discussions between both countries.

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

- Reuters

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