Malaysian PM to scrap East Coast Rail Link

Rolling Stock Market
pic: Malaysian East Cost Rolling Stock

On 13th August, MALAYSIA’s prime minister Dr Mahathir Mohamad has confirmed that he want to cancel the construction contract for the East Coast Rail Link (ECRL). This move comes a year after his predecessor had officially launched civil works on $US 13.4bn project.

Mahathir said in an interview with associated press, that he wants the government to pull out of Chinese-backed infrastructure projects including ERCL and two gas pipelines. “We don’t think we need these two projects, we don’t think they are viable,” the prime minister said. “If we can, we would just like to drop the projects.”

Last month the project development company Malaysia Rail Link instructed contractor China Communications Construction Company (CCCC) to suspend works.

East Cost Rail Link was a flagship project of Mahathir’s predecessor Mr Najib Razak.

In addition to the scrapping of ECRL, Mahathir is also seeking to abandon the Singapore – Kuala Lumpur high-speed project. No discussions have yet taken place on how Malaysia might extricate itself from the legally-binding bilateral agreement Najib signed with Singaporean prime minister Mr Lee Hsien Loong in December 2017, although the Malaysian government said last week that an official meeting would take place before the end of the month.

Source: With input from RJ


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