PUTRAJAYA - Malaysia will go ahead with plans to build a cross-border MRT line between Johor Bahru and Singapore, but wants to look at ways to lower costs, said newly minted Transport Minister Anthony Loke.

He said that although the government had agreed in principle to the implementation of the Rapid Transit System (RTS) link, a 4km line that will connect Bukit Chagar station in Johor Baru to Woodlands North, detailed information about it is still needed to be brought to the Cabinet for approval. He told reporters after a Cabinet meeting on Wednesday (May 30).

"The government remains committed to implement the RTS project … in terms of cost, the Cabinet approval is needed" said Mr Loke.

Since it swept into power in the May 9 polls, the new Pakatan Harapan government has set its sights on slashing government expenditure in the face of the hefty RM1 trillion (S$340 billion) national debt racked up by former premier Najib Razak's administration.

Among other things, it has taken aim at pricey mega-projects, such as the Kuala Lumpur-Singapore high-speed rail project, which according to Prime Minister Mahathir Mohamad will be scrapped subject to discussions with the Singapore government.

Mr Loke on Wednesday told Channel NewsAsia that while Malaysia will have to re-examine the RTS project, including its cost, the link is "still on the table".

"I was made to understand that the cost of the project is RM4 billion for the Malaysian government, but of course we are looking at how to reduce cost... We have just made the decision, we have to initiate negotiations and discussions with our counterparts in Singapore," he told the broadcaster.

The rail agreement was inked in January between Singapore and Malaysia under the previous Barisan Nasional government. Rail operators SMRT and Prasarana Malaysia were expected to form a joint venture next month, while construction was expected to begin next year.

Leaders on both sides of the Causeway had previously hailed the RTS, which is set to open by end 2024, as playing an important role in boosting cross-border economy and easing commutes.

About 400,000 Malaysians work and live in Singapore, with most of them making the daily commute from Johor and returning in the evening.

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