The signing was witnessed by Malaysian Prime Minister Datuk Seri Najib Razak and his Singaporean counterpart Lee Hsien Loong, who is on a working visit to attend the 7th Malaysia–Singapore Leaders’ Retreat in Wisma Putra.

The deal was signed by Minister in the Prime Minister’s Department Datuk Abdul Rahman Dahlan for Malaysia and Singapore Transport Minister Khaw Boon Wan.

The HSR is expected to cut land travel time between Kuala Lumpur and Singapore to 90 minutes. The targeted completion date is 2026 with construction beginning in 2018.

Malaysia and Singapore agreed to the rapid rail link between the two capitals following a retreat between Najib and Lee in 2013.

The 350km double track rail line with speeds of over 300km/hour will have eight stations — Bandar Malaysia, Putrajaya, Seremban, Ayer Keroh, Muar, Batu Pahat, Iskandar Puteri and Singapore.

The HSR line will have one terminus in the new township of Bandar Malaysia, at the edge of Kuala Lumpur, with another at the upcoming Jurong Lake District, in the west of Singapore.

The customs, immigration and quarantine facilities for the railway will be co-located at three stops which are Singapore, Iskandar Puteri in Johor and Bandar Malaysia in KL.

The rail project has been dubbed a “game-changer” that will boost connectivity, strengthen economic ties and forge closer ties between people of both countries.

Several countries are currently bidding for the project including Japan, China and South Korea.