Singapore, Malaysia agree to build high-speed rail link

Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak hailed the project, which would cut travel time between the city-state and Kuala Lumpur to 90 minutes. The target year for completion is 2020.

"This is a strategic development in bilateral relations that will dramatically improve the connectivity between Malaysia and Singapore," the leaders said in a joint statement issued after meeting in Singapore.

"It will facilitate seamless travel between Kuala Lumpur and Singapore, enhance business linkages and bring the peoples of Malaysia and Singapore closer together."

The existing rail link between the two countries dates back to the period of British colonial rule over both, with stops at several Malaysian towns.

 No cost was given for the new rail link.

"(We) have some very preliminary figures but I am not inclined to mention those figures because it will tend to stick in people's minds," Najib said at a joint news conference with Lee.

"Our two cities will complement each other, our two countries will look at each other differently and the opportunities are boundless between our two countries," Najib said.

Lee quipped that Singaporeans would be able to have lunch with friends in Kuala Lumpur and get back within the day.

The 90 minute travel time for the train compares with four hours by car, including immigration clearances, and five hours by bus. And while a flight takes less than an hour that does not take into account the time taken to check in, pass immigration and pick up luggage.

"It's a strategic project for the two countries. It will change the way we see each other," said Lee, likening it to the heavily used London-Paris connection.

Both countries belong to the 10-member Association of Southeast Asian Nations (ASEAN), which hopes to one day link most of the member states by rail and extend the connection to China and possibly India.

ASEAN is contemplating a link that will run from Singapore to Kunming in southwestern China.

According to ASEAN's website, there is an estimated 4,069 kilometres (2,522 miles) of missing links that need to be built, or existing railways that need to be rehabilitated, in several countries.

"Beyond ASEAN, once these links are built, it will connect both the mainland ASEAN and ASEAN with its trading partners China and India," a fact sheet on the project said.

The Singapore-Malaysia high-speed rail link was first mooted in the 1990s by Francis Yeoh, head of Malaysian infrastructure conglomerate YTL, which built an express train service from the Kuala Lumpur International Airport to the capital's downtown area.

The idea was repeatedly shelved largely due to cost concerns. Malaysian media reports said in 2009 that the project's cost was estimated at $2.5 billion-$3.5 billion.

Hopes for the project were revived in 2010 when it was tapped as a potential key project under an economic transformation drive launched by Najib, who became prime minister the year before.