Why revive HSR after paying RM320m to terminate it?

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Malaysia's Proposal to Revive Singapore HSR Amidst Past Termination Costs

Malaysia has proposed the revival of the Kuala Lumpur-Singapore High Speed Rail (HSR) project, a move that follows the nation's payment of RM320 million to Singapore for its termination. Singapore has indicated openness to fresh proposals from Malaysia on the HSR, with both countries' transport ministries set to discuss the matter further. The Malaysian government plans to bring any new proposals to the Cabinet for consideration.
Rationale for Termination and Subsequent Revival

The initial decision to terminate the HSR project was influenced by cost scrutiny. The Pakatan Harapan government had sought to review the project's "exorbitant sums, pricing and cost structures." Subsequently, the Perikatan Nasional government made the decision to pay the RM320 million compensation and instead pursued an alternative, the KL-Johor Baru HSR. This alternative was considered not financially viable or logistically practical if it did not extend to Singapore.
Concerns Regarding Transparency and Accountability

Concerns have been raised regarding the transparency of the HSR project, particularly in light of past allegations. Singapore's transport minister had previously stated that the Malaysian government sought to bypass the jointly-tendered asset company, which was intended to ensure accountability through an open and transparent international tender process. Questions remain about whether a revived KL-Singapore HSR project will adhere to principles of open tenders and transparency, and whether its cost structure will be equitable for Malaysia.
Financial and Logistical Viability

The previous assessment suggested that the HSR project would be financially unviable and logistically impractical if its route terminated in Johor Baru without connecting to Singapore. This highlights the strategic importance of Singapore's inclusion for the project's overall feasibility and potential economic benefits. The current proposal for revival implicitly addresses these prior concerns about the project's viability when truncated.

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Why revive HSR after paying RM320m to terminate it?

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