PM says still no decision on ECRL, negotiations ongoing

Tun Dr Mahathir Mohamad. -AFP

PETALING JAYA: No decision has been made with regard to the East Coast Rail Link (ECRL) project and negotiations are still ongoing to find a solution, says Tun Dr Mahathir Mohamad. 

"At this moment, no final decisions have been made. Some decisions were made but we have to find a better solution. We are still negotiating," said the Prime Minister. 

"We feel that we should give time to both sides (Malaysia and China) to come up with a solution to the problem. There may be other options - we are open. 

"We are still studying the costs. Apparently, there are offers by others which will cost less. The previous government gave a very high estimate on ECRL," Dr Mahathir added. 

He was speaking to the media after chairing a Parti Pribumi Bersatu Malaysia (Bersatu) supreme council meeting here Tuesday (Jan 29).

Finance Minister Lim Guan Eng and Economic Affairs Minister Datuk Seri Azmin Ali were caught in a media tussle when the former said the government has yet to decide on the ECRL but the latter said the project had been scrapped due to high costs.

According to Dr Mahathir, the conflicting information on the ECRL was the result of the media interpreting ministers' statements differently. 

"Both (ministers) are right but the timing (stated) was wrong. The minister who attended the Cabinet meeting made a statement that was not exactly reported in the media.

"The media reported something else and stressed different points. What he was explaining was that we need to have good relations with China because China will be a partner with us, a source of foreign direct investment.

"The conflicting information is because the media interpreted his (the minister's) statement differently," said Dr Mahathir.

The RM81bil ECRL project was approved by the Cabinet under then-premier Datuk Seri Najib Tun Razak in October 2016. 

The construction was to be handled by China Communication Constructions Company Ltd (CCCC) while the financing was to be provided by Export-Import Bank of China (Exim Bank of China). 

Malaysia would be able to secure part of the loan from Exim Bank of China on the condition that CCCC builds the railway.

The 688km rail link, if built, will connect Port Klang in Selangor with Pengkalan Kubor in Kelantan and will be constructed in two phases.