He said he was pleased with the current state of relation between Malaysia and Singapore, .
Each country will appoint an Infrastructure Company (InfraCo) to fund, build, own, maintain, and renew the civil infrastructure and stations within their respective territories.
Thousands of Malaysians travel back and forth to tiny but rich Singapore for work and school, and the new transit system is created to carry up to 10,000 passengers per hour in each direction - more than 30 times more than the existing train service can accommodate. "Both governments will jointly appoint an operating company (OpCo) to own, design, build, finance, operate, maintain and renew the RTS Link's operating assets such as trains, tracks, systems".
Customs, immigration and quarantine facilities are to be co-located in both Bukit Chagar and Woodlands North, with passengers clearing both sets of border controls at their point of departure.
Singapore and Malaysia vowed on Tuesday to push ahead with two ambitious rail projects linking the two countries as Malaysian Prime Minister Najib Razak played down political uncertainty ahead of a general election to be held this year.
Following the commencement of the RTS link passenger service, all KTMB railway services in Singapore will eventually stop within six months. "Both governments welcomed the exchange of letters between the Malaysian Prime Minister's Department, Prasarana, LTA, and SMRT Corporation Ltd, recording their commitment for Prasarana and SMRT to form a Joint Venture (JV) Company to be the OpCo for the first concession period. Subsequent concessions will be awarded through open tender", it said.
The RTS Link will cross the Strait of Johor on a 25m-high bridge between Woodlands North station in Singapore and Bukit Chagar station in Johor Bahru.
"It is an ambitious project, it is quite complicated because it has to start above ground, cross the water, go underground, and then there is a [border control] underground that must connect, then the people can come out and go onto the Singapore MRT trains", Singapore's Prime Minister Lee Hsien Loong told local media.
Sharing the same sentiment, Singapore Prime Minister Lee Hsien Loong said although Linggiu Reservoir had gradually been filled up over the a year ago with good rainfall, one did not know when the next prolonged dry spell would hit.
The agreement encompasses technical, safety and security requirements and commercial, financing and regulatory structures, as well as customs, immigration and quarantine arrangements.