Malaysia And Singapore Agree To Reduce Second Link Toll Rate By 30 Per Cent

23 June 2010 , By Bernama

Malaysia and Singapore have agreed to reduce their respective toll charges at the Second Link by 30 per cent effective Aug 1.

The consensus was reached after a meeting between Prime Minister Datuk Seri Najib Tun Razak and his Singapore counterpart, Lee Hsien Loong, here Tuesday.

Lee is here for a day's visit to, among others, further discuss the implementation of the points of agreement (POA) on Malayan Railway land in Singapore.

"Whatever proposal that Malaysia made...I made 30 per cent offer...Mr Lee very kindly responded with the equivalent amount.

"Hopefully, the reduction of the toll rate will see a better utilisation of the Second Link," Najib, who is also Finance Minister, told a joint news conference here.

The Second Link refers to the bridge that spans the stretch between Singapore and Malaysia where it extends a total of 47km from Tanjong Kupang to Senai in Johor, and a twin-deck bridge supporting a dual three-lane carriageway linking Tanjung Kupang in Johor and Tuas in Singapore.

Meanwhile, Lee said that the toll reduction was good news for the citizens of both countries.

"It is good news for Singaporeans going to Malaysia and Malaysians coming to Singapore and, hopefully, many more Singaporeans and Malaysians will do so," he said.

The Second Link, an alternative route to the Causeway, provides speedy clearance and a hassle-free journey to commuters.

It is already being regarded as the obvious choice for the transportation of people and goods between the two countries.

Both leaders agreed that a Malaysia-Singapore joint company, known as M-S Pte Ltd, be established before Dec 31 this year to develop the land vacated by KTMB.

The company will be set up by Malaysia's Khazanah Nasional Berhad and the Singapore government's investment arm, Temasek Holdings Limited, with each holding 60 per cent and 40 per cent equity respectively.

KTMB land in Tanjong Pagar, Kranji and Woodlands and three additional pieces of land in Bukit Timah, totalling 271 hectares, will be vested in the company for joint development.

The developed KTMB land could in turn be swapped, on the basis of equivalent value of pieces of land in Marina South and Ophir Rochor in Singapore.

Najib said Malaysia would first study the proposal before making a final decision in three months' time.

Najib said he and Lee agreed that Malaysia and Singapore should move forward with a resolution on the POA, which had been a long outstanding issue between the two countries.

"The spirit of our discussion today was very warm, very positive and I thank Prime Minister Lee for being as flexible as possible with the intention that there will be a final resolution on the POA," he added.

Earlier, Lee said he had asked his Minister for National Development, Mah Bow Tan, to convey the land swap offer proposal to the Malaysian government.

He described the final resolution to the POA signed in 1990 as a major decision for Malaysia.

"I had a useful exchange with the prime minister (Najib) today on some preliminary perspectives and views. But this is a major decision, so Malaysia will think it over further and Singapore will consider the comments made by Malaysia.

"The overall concept is to swap the three plus three pieces of KTM land with parcels of land in Marina South and Ophir Rochor of equivalent value.

"So, I have a proposal, laying out several variations for the prime minister (Najib) to choose from," he said.

Asked whether other issues were discussed, Lee said: "We will consider in due course."