KUALA LUMPUR, May 28 (Xinhua) -- Malaysian Prime Minister Mahathir Mohamad said on Monday that he will drop the Kuala Lumpur-Singapore High Speed Rail project, as part of his efforts after winning the election to restore the financial health of the country.

Mahathir made the remarks at a press conference, saying it is "a final decision" to cancel the project, but Malaysia still has to talk to Singapore over a penalty concerning withdrawal.