Prime Minister Mahathir Mohamad said Singapore has yet to be officially told of Malaysia's wish to scrap the high-speed rail project, even as he defended his comments that the project would cost RM110 billion (S$37 billion) - higher than estimated by the previous government.

The decision to cancel the project that passes through four Malaysian states - Selangor, Negeri Sembilan, Melaka and Johor - is expected to hit property developers which have bought land near planned stations along the route.

Meanwhile, the new Johor state government is expected to scrap two mega projects worth RM3 billion to curb spending.

These are an eco-entertainment park in Kota Tinggi and a science fiction theme park across the border from Tuas, announced by the previous government.

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