The signing ceremony was witnessed by visiting Malaysian Prime Minister Najib Razak and Singapore’s Prime Minister Lee Hsien Loong at the eighth Singapore-Malaysia Leaders’ Retreat.

Lee said the RTS Link is an important long-term cross-border project, and it will benefit thousands of daily commuters as well as reduce the congestion of Singapore-Johor Causeway, which links Johor Bahru across the Strait of Johor to the town of Woodlands in Singapore.

Saying the enhanced connectivity will boost economic cooperation in Iskandar Malaysia (IM), Lee hoped that the two countries would work closely together through the Joint Ministerial Committee for IM to foster a conducive business environment and enhance vocational and technical education training in skills that investors are looking for.

For his part, Najib said the RTS Link is a complex project but it is very durable, and the technical challenges can be overcome.

“We are sanguine and optimistic that will change the nature of connectivity between Malaysia and Singapore.”

According to the Land Transport Authority of Singapore, the bilateral agreement captures the key points of the agreement on the RTS Link project, including the technical, safety and security requirements, commercial, financing, procurement and regulatory frameworks, as well as customs, immigration and quarantine arrangements.

The authority said the RTS Link will have the capacity to carry up to 10,000 passengers per hour per direction. To facilitate passenger flow, it will have co-located customs, immigration and quarantine facilities. Passengers travelling in either direction will clear both Malaysia and Singapore authorities at the point of departure, and need not go through immigration clearance again at the point of arrival.

The two leaders also exchanged views on other topics relevant to bilateral cooperation, water supply, and education and cultural cooperation at the retreat.