[KUALA LUMPUR] Malaysia will look to negotiate the deferment of a high-speed rail project with Singapore, Prime Minister Mahathir Mohamad said on Thursday (July 19).

Mahathir said previously he would cancel the rail link between Kuala Lumpur and Singapore, and would talk with Malaysia's southern neighbour about any compensation that has to be paid.

"The problem is that if we just unilaterally discard the agreement, we have to pay a very high compensation," Mr Mahathir told reporters in parliament on Thursday, adding that given Malaysia's financial situation, the project has to be deferred.

THE STRAITS TIMES