A high bridge linking Malaysia and Singapore under the Johor Bahru-Singapore Rapid Transit System (RTS) link project is among key areas of agreement reached at the seventh Malaysia-Singapore leaders' retreat here.

Prime Minister Datuk Seri Najib Tun Razak said the bridge solution and the RTS, to improve connectivity and reduce congestion at border crossings, would be finalised by the two countries by the end of next year.

He said the solutions were matters that the leaders of the two countries had deliberated for quite some time.

"We think it is the most cost-effective solution, that's why we thought of the high bridge solution to integrate it with the Singapore mass rapid transit system.

"By next year, we should be able to finalise it," he said in a joint press conference after witnessing the signing of a bilateral agreement for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project here, today.

Singapore Prime Minister Lee Hsien Loong was also present at the press conference.

In a joint statement, the leaders welcomed the progress made on the Johor Bahru-Singapore RTS link project under the Transportation Links Work Group and affirmed the key areas of agreement reached to-date.

When completed, the RTS link would improve connectivity and reduce congestion at the border crossings, it said.

The RTS Link will connect Bukit Chagar, Johor Bahru in Malaysia and Woodlands North in Singapore where passengers can transfer to Singapore's upcoming Thomson-East Coast Line.

The RTS link will use the four core Thomson-East Coast Line systems to reap economies of scale, and will be operated by a corporate entity.

Fares for the RTS link would be market-based and set by the operator and would not be regulated by the Governments, the statement said.

The leaders look forward to signing a bilateral agreement on the RTS link by end-2017.

Meanwhile, the HSR agreement signed today formalised the technical, safety and security requirements, commercial, financing, procurement and regulatory frameworks, as well as customs, immigration and quarantine arrangements for the project. -- Bernama