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