Malaysia and Singapore take a significant milestone after signing a memorandum of understanding on the long-anticipated high-speed rail project linking the two countries. The bidding for the multi-billion dollar project is going to be intense, as railway companies from three Asian countries express their interest on the project.

"The signing of the MOU signifies Malaysia and Singapore’s firmest commitment to this iconic project. It is clear, very clear, that both sides have the deepest commitment to stay the course," said Najib Razak, prime minister of Malaysia.

The memorandum of understanding tackles such challenges as what commercial model will be used, the regulatory framework, customs and immigration, safe and security.

"Both cities benefit. There’s more competition, but there’s more business to be done, and it means vitality, it means more rapid progress. It’s a major undertaking. It will cost quite a lot on both sides and we have to get it right. But if we do, it will be a lasting and strategic contribution," said Lee Hsien Loong, prime minister of Singapore.

Long before Tuesday's signing, countries had begun showing their interest in the project. Japan and South Korea’s HSR companies have set up exhibits in Kuala Lumpur malls, while China Railway Group is the major investor in new a urban development where the kuala lumpur terminus will be located.