Transport minister Chan Kong Choy has denied a report that Malaysia and Singapore have approved construction of a bullet train linking the two countries, saying the plan is still being mulled.

"The government has still not made a final decision, it is still looking at the proposal," Chan was quoted as saying by the state Bernama news agency.

The minister also said the government did not have a timetable to make a decision, and that it wanted to thoroughly evaluate the proposal.

A report Monday by the New Straits Times said the two nations had approved the high-speed train proposed last year by Malaysian conglomerate YTL Corporation.

Citing an unnamed YTL official, the report said YTL would build the rail link by the end of 2009, and that design plans and studies were underway.

The official also said YTL planned to draw on the expertise of Germany's Siemens AG in its construction.

An existing rail service from capital Kuala Lumpur to Singapore takes about seven hours, while the high-speed train would make the journey in 90 minutes.