International Trade and Industry Minister Datuk Seri Mustapa Mohamed said he was confident that the government will implement Johor's Rapid Transit System (RTS) which could have a link to Singapore's Mass Rapid Transit Line.

This is because the system will be important to further develop Johor Bahru and Iskandar Malaysia, he said.

"This matter has not been finalised because the study is still ongoing. (But) I am confident that it will be carried out as it is important for the progress of Johor Bahru and Iskandar," he told reporters after delivering his keynote address at the Europe Day celebration organised by the European Chamber of Commerce Singapore (EuroCham) here Monday.

An agreement in principle has already been made for the project, he said.

The 500km RTS serving Iskandar Malaysia is intended to improve transportation links between the two neighbouring countries.

On Iskandar Malaysia, Mustapa said Singapore companies were certainly keen on Iskandar Malaysia and likewise the success of the economic region also depended on Singaporean companies. - Bernama