Two China project in Malaysia; East Coast Rail Link (ECRL) project and natural gas pipeline project in Sabah will be cancelled for now.
Source: BERNAMA. Straitstimes.
Malaysian Prime Minister Mahathir Mohamad said on Tuesday (Aug 21) that the Chinese-funded US$20 billion or S$27.3 billion has been suspended pending discussions over pricing and graft accusations. The 688km rail linking Port Klang and Kota Bharu was launched last year and slated for completion in 2024. Also, the gas pipeline project on Sabah has been suspended since July, involved creating a 662km gas pipeline from Kimanis to Sandakan and Tawau.
During his five day trip in Beijing, China, Mahathir made the comments that the projects could not go on due to Malaysia's financial woes. He state that Malaysia current focus right now is too eliminate debts and loans. Prior to his China visit, he had vowed repeatedly to discuss what he called “unfair” Chinese infrastructure deals authorised by Najib.
"If we have to pay compensation, we have to pay. This is the stupidity of the negotiations before. We must find a way to exit these projects...this is our own people's stupidity," said Dr Mahathir, according to the South China Morning Post.
Source: REUTERS
Source: www.channelnewsasia.com, asiaone.com, straitstimes.com, scmp.com