JOHOR BAHRU: Malaysia will proceed with the construction of the Johor Bahru-Singapore Rapid Transit System (RTS) Link project, Prime Minister Mahathir Mohamad said on Thursday (Oct 31).
Speaking at a press conference at the Bangunan Sultan Iskandar Customs, Immigration and Quarantine Complex, Dr Mahathir said the total cost of the project is estimated to be RM3.16 billion (S$1.03 billion), which is RM1.77 billion or 36 per cent less than the original cost of RM4.93 billion.
In a statement, Putrajaya said Cabinet approval was given on Oct 18 for the project to proceed, with changes to the project structure, scope and specifications.
An important feature of the revised project structure is the involvement of the developer and owner of the land at Bukit Chagar to fund and enable the project, by waiving the land cost, said the statement.
Coupled with optimised costs in construction and rail systems, there will be substantial savings, thus making the project more financially viable.
In May, Singapore and Malaysia agreed to suspend the construction of the RTS Link until Sep 30 at Malaysia’s request.
As part of the agreement, Malaysia had agreed to reimburse Singapore for the abortive costs incurred – around S$600,000 – due to the suspension. During the suspension period, Malaysia looked at whether to proceed with the RTS Link project as it was.
It was announced on Sep 29 that both sides have agreed to extend the deadline for an additional month, until Oct 31.
In delivering the budget speech on Oct 11, Malaysia’s Finance Minister Lim Guan Eng said that Putrajaya “intends to proceed” with the RTS as a longer-term solution to address congestion at the Causeway and Second Link.
READ: Malaysian PM Mahathir confirms RTS will proceed, but says it will ‘take some time’
Artist’s impression of the RTS Link Woodlands North Station. (Image: LTA)
The RTS Link, which connects Bukit Chagar in Johor Bahru to Woodlands in Singapore, is expected to ferry up to 10,000 passengers per hour each way. The project was meant to be completed by 2024, but is now behind schedule with Malaysia repeatedly delaying confirmation of its joint venture partner.
According to a bilateral agreement signed in January 2018, a joint venture company comprising Singapore’s SMRT and Malaysia’s Prasarana Malaysia should have been constituted by Jun 30 last year.
The joint venture company should also have been appointed as the RTS Link operator through a concession agreement with Singapore’s Land Transport Authority and the government of Malaysia by Sep 30, 2018.
