KUALA LUMPUR, July 10 — Malaysia has yet to give full notice to Singapore on the cancellation of the High Speed Rail (HSR) project, Prime Minister Tun Dr Mahathir Mohamad confirmed today.

He said that due to the negative reaction of the financial markets regarding any announcement, Malaysia must now be cautious in making decisions.

"As for HSR, we have not given full notice. We have to be careful in what we say,” Dr Mahathir said.

The Singapore government recently said that Malaysia is yet to reply to its note on the announced cancelation of the HSR and also that it would seek compensation on costs incurred should be project should the project be shelved.

"Decisions are not made so easily. When we announce something, the market reacts negatively,” he added. "What we are trying to do is to run the country well financially. They should appreciate that,” he said.