Written Reply by Minister for Transport Khaw Boon Wan to Parliamentary Question on New Timeline to Complete Construction of Johor-Singapore Rapid Transit System

Mr Ang Wei Neng asked the Minister for Transport in light that the suspension of the decision to construct the Johor-Singapore Rapid Transit System (RTS) ends on 31 October 2019

a.     whether Malaysia has agreed to proceed with the construction of the RTS; and

b.     if so, what will be the estimated new timeline to complete the construction of the RTS. 

Reply by Minister for Transport Khaw Boon Wan:

1.     On 21 May 2019, Singapore and Malaysia signed a Supplemental Agreement to suspend the construction of the Johor Bahru-Singapore Rapid Transit System (RTS) Link Project up to 30 September 2019. Malaysia had requested the suspension, to give them time to study ways to reduce the project cost. While the RTS Link Bilateral Agreement makes no provision for a suspension, in the spirit of bilateral cooperation, Singapore agreed to Malaysia’s request. On 20 September 2019, Singapore received Malaysia’s request for an extension of the suspension period to 31 October 2019. Singapore agreed to Malaysia’s request. 

2.     On 21 October 2019, Malaysia conveyed to Singapore that they intend to proceed with the RTS Link Project with some changes. Malaysia was however not yet ready to share the details of their proposed changes with Singapore. Without the details, Malaysia’s proposal is incomplete and Singapore is unable to make a thorough assessment of the technical and commercial feasibility of the proposal.  

3.     On 29 October 2019, Malaysia requested a further extension of the suspension period by six months to 30 April 2020. In the spirit of bilateral cooperation, Singapore agreed to Malaysia’s request to further extend the suspension period.   

4.     Singapore welcomes Malaysia’s decision to proceed with the RTS Link Project. This is a mutually beneficial Project for both countries. The RTS Link will significantly ease Causeway congestion, facilitate business and tourism, and bring our people closer together. While we are not obliged to accept Malaysia’s proposed changes, we will continue to keep an open mind and assess them carefully and objectively.  

5.     Both sides are currently discussing the changes to the Project, which will require amendments to the RTS Link Bilateral Agreement. Apart from the re-stated Bilateral Agreement, two other agreements will need to be signed at the same time by the end of the suspension period. They are the Joint Venture Agreement between Singapore’s SMRT Corporation and Malaysia’s Prasarana Malaysia Berhad to constitute a joint venture Operating Company or "OpCo", and a Concession Agreement for the Singapore and Malaysian Governments to appoint this OpCo as the RTS Link operator. The discussions will take some time, and both sides are working hard on this.