KUALA LUMPUR, July 19 — The Kuala Lumpur-Singapore High Speed Rail (HSR) project could still materialise albeit later than originally planned, Prime Minister Tun Dr Mahathir Mohamad clarified today.

He also confirmed that Malaysian officials will meet with Singapore counterparts to discuss the status of the project and all the costs involved.

"We decided we might have to do it at a later date or reduce the price, but the reduction of price is very difficult,” Dr Mahathir said.

"At this moment we don’t have the funds so we have to delay.”

Economic Affairs Minister Datuk Seri Mohamed Azmin Ali yesterday said that he would attempt to meet with his Singaporean counterpart before the end of July to discuss the project.

Dr Mahathir also admitted today that Malaysia cannot "unilaterally” discard the agreement to build the railway.

"We have to pay a high compensation if we discard the agreement. We cannot say we will never build the HSR but at this moment, we don’t have the funds,” he added.