KTMB station in Tanjong Pagar to relocate to Woodlands
by July 2011
SINGAPORE: Singapore and Malaysia capped a historic day in
relations on Monday with agreement on a long outstanding bilateral
issue.
After 20 years, both sides have arrived at a solution on the
Malayan Railway Land in Singapore.
The leaders of the two countries agreed to move the station at
the heart of the city centre in Tanjong Pagar to Woodlands Train
checkpoint, near the border by the 1 July 2011.
The smiles said it all - of a retreat that has been fruitful
with significant moves.
The centrepiece must surely be the issue of the railway land and
lines, spelt out in the Points of Agreement (POA) signed in
1990.
Singapore Prime Minister Lee Hsien Loong: "Our focus has been
developing our bilateral relationship at a time when we face many
challenges in an uncertain and rapidly globalising world.
“There are many competitive alternative centres growing in Asia
where we need to work together bilaterally in ASEAN and where we
also need to clear issues which have been hanging over us for some
time so that we can move forward and develop a win-win
relationship.
“It is a matter for rejoicing. It is a good deal. Both sides are
happy and this will benefit both sides considerably."
Malaysia’s Prime Minister Najib Razak said: "A year ago, when we
met, we decided that we wouldn't allow outstanding bilateral issues
to be in the way of developing and strengthening bilateral ties and
move forward in areas where we could achieve common agreement
between our two sides.
“With that positive mindset in mind, we have achieved much
within a year starting with the officials from both sides who have
been working very hard to find a common ground.
“Today is quite historic because we see now the light at the end
of the tunnel with respect to an outstanding issue which has been
lingering for almost 20 years."
Having waited this long, the next move is to move fast.
PM Lee said: "There is urgency. This matter really cannot wait
indefinitely because it is already 20 years. And there are many
development projects in Singapore which have been held up because
the POA has not been implemented as it should have been many years
ago."
So the 1990 Points of Agreement has now been supplemented by new
terms and conditions to maximise the potential of the Malayan
Railway Lands in Singapore.
When the Keretapi Tanah Melayu Berhad (KTMB station) moves to
the Woodlands train checkpoint by 1 July 2011, Malaysia will
co-locate its railway Customs, Immigration and Quarantine (CIQ)
facility there.
On its part, Singapore would ensure that there are bus services
to connect KTMB station at Woodlands with a nearby MRT station for
the convenience of train passengers.
Another key issue settled is the development of several land
parcels linked to the train line.
Both countries will also set up a company known as M-S Pte Ltd
by December 31 this year.
Malaysia will have a 60 per cent stake under Khazanah Nasional
Berhard while Singapore will have a 40 per cent share to be held by
Temasek Holdings.
This company will handle the joint development of three parcels
of land in Tanjong Pagar, Kranji and Woodlands as well as another
three pieces of land in Bukit Timah.
These land parcels could be swapped based on the equivalent
value for pieces of land in Marina South and Ophir-Rochor.
Both sides will conduct valuation studies.
Prime Minister Lee will visit Kuala Lumpur within a month to
discuss the land swap.
The transfer of the land parcel to M-S Pte Ltd will take effect
at the time when KTMB vacates the Tanjong Pagar Railway
Station.
Mr Lee added: "Land prices have been moving over this last one
year. You have seen the property market is quite active. That is
the reason why we did not settle the land swap today. I wanted an
updated valuation.
“On the basis of updated valuations, we will make them an offer
and it is up to them whether they want to take the offer for the
swap. It is substantial. These are very valuable pieces of land if
they are developed.
“And that is why the POA as it was and even more now as it has
been updated and rounded up is a win- win proposal for both
countries because it enables us to develop the land.
“It enables M-S Private Limited to share in the upside of the
land which is KTM land and I think enables us to move forward in so
many other areas to cooperate and work together for mutual benefit
without having this outstanding issue always there a question mark.
If you can't solve this, how can you talk about new things?”
"So with the understanding we have achieved at today's meeting,
we can more or less say that the POA agreement with some enhanced
features should be finally put to rest particularly when PM Lee
meets me in a month's time.
“The spirit and political undertaking is to find a resolution on
a mutually beneficial manner so that both countries can benefit the
finalisation of the enhanced POA agreement."
Both leaders also agreed the Tanjong Pagar Railway Station's
passenger terminal will be conserved given its historical
significance. It will also be the centrepiece for the proposed new
development on this site.
The job is now in the hands of a joint implementation team.
It has to complete its work by the December 31.
