JOHOR BAHRU (Oct 31): A train line linking Malaysia's southern state of Johor with neighbouring Singapore will go ahead after the projected cost was cut by 36%, Malaysia's Prime Minister Tun Dr Mahathir Mohamad said on Thursday, ending months of uncertainty over the delayed project.

The Rapid Transit System Link, which will bridge one of the world's busiest border crossings, can carry up to 10,000 passengers an hour each way, more than 30 times the capacity of the existing train service.

The project will cost RM3.16 billion (US$757 million), down from RM4.93 billion under the original proposal, Dr Mahathir said, adding that his government was in discussions with Singapore over the terms.