Malaysia PM refutes cancellation of China's railway project
Malaysian PM refutes cancellation of Chinese-invested railway project
The Malaysian government has not made final decision on the East Coast Rail Link (ECRL) project invested by China and negotiations are still underway, Malaysia’s Prime Minister Mahathir Mohamad said on January 29.
Malaysia's Prime Minister Mahathir Mohamad (Photo: VNA)
Kuala Lumpur (VNA) – The Malaysian government has not made finaldecision on the East Coast Rail Link (ECRL) project invested by China and negotiationsare still underway, Malaysia’s Prime Minister Mahathir Mohamad said on January29.
The PM told the press that both sides need more time to come up with a solutionto this matter.
He added that Finance Minister Lim Guan Eng will help with the negotiations andmake an announcement later at the end of the negotiations.
The nearly 20-billion-USD railway project again came into spotlight afterMalaysia’s Economic Minister Mohamed Azmin Ali said on January 26 that thecontract with China Communications Construction Company (CCCC) had beencanceled.
Minister Lim expressed shock over Azmin’s announcement.
Explaining the disagreement between the two ministers, PM Mahathir said bothwere present in the government’s meeting on January 24, but the media hadinterpreted the ministers' statement wrongly that had led to amisunderstanding.
There has not been any decision on the project, the PM confirmed.
In 2017, CCCC won the construction of the 620-km ECRL project connectingMalaysia's underdeveloped East Coast area to Kuala Lumpur and Thailand. 85percent of the cost of this project was covered by the Export-Import Bank ofChina.
The project was officially launched in August 2017, but was suspended by theGovernment of PM Mahathir Mohamad after taking power in May 2018.-VNA
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Malaysia’s cancellation of some controversial China-backed infrastructure projects might cause an initial headache but will be beneficial in the long term, said an article published by Malaysian-based the Star Online news agency.
China remains optimistic that the shelved East Coast Rail Link (ECRL) project in Malaysia will be revived, and is hoping for a win-win solution that will benefit both nations, The Star newspaper quoted Chinese Ambassador to Malaysia Bai Tian as saying.
Malaysia’s Economic Minister Mohamed Azmin Ali said on January 26 that the country will cancel its East Coast Rail Link (ECRL) project with contractor China Communications Construction Co Ltd (CCCC) due to high annual interest rate.
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Malaysia's Prime Minister Mahathir Mohamad (Photo: VNA) 
