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Significance

The decision came at the end of a project review, which had been extended at Malaysia’s behest. Both countries’ economies have been hit hard by the COVID-19 pandemic’s fallout, although Singapore has been better able to mitigate the damage.

Impacts

Construction of a light-rail link between Johor Bahru and Singapore will proceed as planned.

Malaysia’s economic situation should improve in the second half of 2021 as the coronavirus’s spread is arrested and vaccines are rolled out.

Singapore’s goal of developing the Jurong East area as a second financial district will take longer to achieve with HSR’s cancellation.

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