Singapore to seek compensation if Malaysia reneges on China rail deal

SINGAPORE will seek compensation for costs incurred if Malaysia
cancels a planned China Belt and Road rail link between the two

Singaporean Transport Minister Khaw Boon Wan told parliament that
compensation would be sought under the terms of the 2016 high-speed
rail bilateral agreement between Singapore and Malaysia.

"We will deal with the question of compensation from Malaysia for
costs incurred by Singapore in accordance with the bilateral agreement
and international law," Mr Khaw said, adding that Singapore expected
to incur costs of around S$300 million (US$221.5 million) by the end
of the year.

Soon after achieving victory in Malaysia's May general election, Prime
Minister Mahathir Mohamad, 92, said he would cancel the rail link to
Singapore, fearing that it would generate military activity in the

The new prime minister has suspended works on the East Coast Rail Link
and energy pipeline projects backed by Chinese state companies, saying
they were too costly.

Singapore had already acquired land for the project, passed
legislation, and set up an infrastructure company with a team of more
than 100 specialists to build, own, fund and maintain the
high-speed-rail civil infrastructure in Singapore, Mr Khaw said.