China contractor confirms it has halted work on ECRL project


  • Nation
  • Friday, 06 Jul 2018

HONG KONG (Reuters): The Chinese contractor for Malaysia’s US$20bil (approximately RM95bil) East Coast Railway Link (ECRL) has confirmed that it suspended all work on the project as Putrajaya seeks to renegotiate the terms of the deal with China.

The rail link was among several projects halted by Malaysia since a new government was elected in May, promising to review major projects by the previous administration led by Datuk Seri Najib Tun Razak.

China Communications Construction Co Ltd said late on Thursday (July 5) it halted all work at the request of the project owner Malaysia Rail Link Sdn Bhd.

“Recently, the company has received a letter from Malaysia Rail Link Sdn Bhd, the employer, which requires an immediate suspension of the contract under the ECRL project until further instructions,” the Chinese firm said in a filing with the Hong Kong bourse.

The company said the suspension would not have a significant impact on its operating performance in 2018.

The company was contracted to build a 530km railway traversing the Malaysian peninsula from east to west. The seven-year contract was valued at 72.8bil yuan (US$10.93bil).

The entire 688km ECRL will connect the South China Sea off the east coast of peninsular Malaysia with the strategic shipping routes of the Straits of Malacca to the west.

Malaysia has also cancelled two pipeline projects that involved other Chinese state-owned firms.

“The decisions are solely directed towards the related contractors, relating to the provisions mentioned in the agreements, and not at any particular country,” the Finance Ministry said in a statement Thursday (July 5).

Malaysian and Chinese officials are in talks for Prime Minister Tun Dr Mahathir Mohamad to visit Beijing soon, two sources with knowledge of the discussions told Reuters. – Reuters

Save 30% for ads-free and full access now!

Monthly Plan

RM13.90/month
RM9.73 only

Billed as RM9.73 for the 1st month then RM13.90 thereafters.

Annual Plan

RM12.33/month
RM8.63/month

Billed as RM103.60 for the 1st year then RM148 thereafters.

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Storm warning: Thunderstorms, heavy rain expected over 11 states, one FT until 6pm Saturday
Pope Francis’ funeral begins at St Peter's Square (livestream)
Ayer Kuning polls: MCA’s Dr Wee meets up with voters
PN: Police report lodged against Perak Umno Facebook admin
Ayer Kuning polls: Voter turnout hits 50.18% as of 3pm
MACC receives special tactical squad vehicles
Zahid urges Risda to diversify rubber products to stabilise prices
Two Myanmar men wanted as key witnesses in murder trial
Sabah PAS yet to finalise under which party logo to contest
Health Ministry closely monitoring new US tariffs, focusing on medical devices, pharmaceutical products, says Dr Dzulkefly

Others Also Read