KUALA LUMPUR, Sept 2 — The Kuala Lumpur-Singapore High Speed Rail (HSR) project has been deferred for two years without a penalty imposed on either Malaysia or Singapore, The Edge reported.

The financial weekly reported that the deferral would last until May 31, 2020 "in a spirit of good neighbourliness”.

"It is worth noting that the legally binding agreement between the two nations for the project, signed in 2016, contains no provisions for such a postponement,” The Edge quoted an anonymous source as saying.

Malaysia could have been liable to RM500 million in penalties if the HSR project was cancelled.

Economic Affairs Minister Datuk Seri Azmin Ali recently negotiated the HSR project agreement in Singapore as he met with Singapore Transport Minister Khaw Boon Wan and the republic’s Foreign Minister Dr Vivian Balakrishnan.