Future of Malaysia’s China-backed East Coast Rail Link hinges on elusive report
- Beijing and Kuala Lumpur have both distanced themselves from negotiations over the massive rail project, citing a long-awaited study that has yet to arrive
Beijing and Kuala Lumpur on Thursday sought to depoliticise the debate over a stalled China-backed megaproject in Malaysia, saying that negotiations on how to move forward would be left to contractors from both sides.
Malaysian Prime Minister Mahathir Mohamad put a stopper on the 80 billion ringgit (US$19.3 billion) East Coal Rail Link (ECRL) project last year after returning to power in a shock election victory.
At a press conference on Thursday, China’s ambassador to Malaysia, Bai Tian, said both governments were still awaiting a report from the project owner Malaysia Rail Link and main contractor China Communications Construction Company before any final decision was made.
“Both governments have been talking to each other about the continuation of the ECRL project. Both have agreed to leave the job of negotiation of this project to the contractor and owner … so now we are still waiting for the report from the two parties,” he said following a visit to a factory run by CRRC Corporation, a Chinese rolling stock manufacturer that is unaffiliated with the project.
Mahathir hands olive branch to Beijing on stalled Chinese rail project
“We haven’t got the report yet but we are still optimistic about the outcome. We hope that by mutual respect, by goodwill and the spirit of mutual benefit and equal footing, the two businesses will come out with a win-win result.”