KUALA LUMPUR: The East Coast Rail Link (ECRL) project, suspended in the middle of last year following Pakatan Harapan’s win in the 14th general election, could be back on track on a smaller scale, provided China agrees to the new terms.
Prime Minister Tun Dr Mahathir Mohamad said the government is trying to tread a fine line in not spending beyond its means while also ensuring that China does not suffer losses.
“What we are trying to do is to ensure that we will not spend much money while China will not suffer a loss,” he was quoted as saying in an interview with Sin Chew Daily.
Malaysia, he said, is facing a dilemma on whether it should proceed with the project or terminate it altogether, as either option will see the government saddled with huge financial costs.
“We are negotiating - formally or informally - with them (the Chinese). To them, this is a profitable contract, so they are reluctant to make changes,” he said.
PH had, in its election manifesto, pledged to terminate the project as it said the contract and loan terms were unfavourable to Malaysia.
“But this is not easy as we were bound by the contract and could not terminate the project easily as we have no money to pay China… We have paid a lot of money to China after the postponement,” he was quoted as saying in the Dec 31 interview.
The RM81bil ECRL project was approved by former prime minister Datuk Seri Najib Tun Razak’s cabinet in October 2016. The construction was slated to be carried out by China Communication Construction Company Ltd (CCCC), with Export-Import Bank of China (Exim Bank of China) financing the project.
Malaysia was allowed to secure part of the loan from Exim Bank of China on the condition that CCCC builds the 688km rail link that would connect Port Klang in Selangor with Pengkalan Kubor in Kelantan.
Meanwhile, Dr Mahathir upheld that ECRL was a waste of money as the government would not get any returns from the rail project, and that there is no way for Putrajaya to tax the concessionaire.
He also cited the West Coast railway line, from which he claimed the government never made a single sen, despite its heavy usage.
“Along the ECRL route, there are less people and the people are mostly poor - not doing big business like the people along the West Coast railway line - so you cannot get your investment back.
“The returns from the project are close to ‘zero’ and we need to pay a RM55 billion debt,” added Dr Mahathir.
In the interview, he also denied claims that he was “pro-Japan, anti-China“, maintaining that he had even gone as far to defend China in a forum he attended in Japan.
“They asked me of my feelings on China. I said that Malaysia is always in touch with China and we are trading partners. We are always friendly to China,” he said.
Dr Mahathir also noted that China first arrived in Malaysia for trade centuries ago but it never colonised Malaysia, unlike the Portuguese.
“So, which countries should (you) fear? China or Europe?” he asked.
“The Chinese people used to know me as their friend. Now, I am said to be not friendly to them, just because our government is reviewing the ECRL and Trans-Sabah Gas Pipeline (TSGP) projects?
“The Chinese government understands our financial problems. It is not that we don’t want (these projects), but (these) are bad projects in the first place and we cannot afford them,” Dr Mahathir said, adding that he would travel to China if it was necessary.
He also said that Putrajaya will not return the two giant pandas, given to Malaysia by China on May 21, 2014, earlier than the date agreed by both countries.
“No, this is a gift,” he said, while noting the pandas are a meaningful symbol of the bilateral relations between China and Malaysia and that Malaysia would treat the pandas with care.
He said the Cabinet has never discussed the matter and he knew nothing about the statement made by Water, Land and Natural Resources Minister Dr Xavier Jayakumar.
Dr Xavier said in November that Putrajaya would discuss with the Chinese government the status of the Giant Panda Conservation Programme in 2019, over its cost.
“The negotiations will have to be carried out with the China Wildlife Conservation Association on whether to continue keeping the giant pandas with the second cub,” said Dr Xavier, adding that the government spent RM4.6 mil for the pandas in 2018.
He added that the cost of managing the pandas is expected to increase to RM7.38mil in 2019.
Prime Minister Tun Dr Mahathir Mohamad said the government is trying to tread a fine line in not spending beyond its means while also ensuring that China does not suffer losses.
“What we are trying to do is to ensure that we will not spend much money while China will not suffer a loss,” he was quoted as saying in an interview with Sin Chew Daily.
Malaysia, he said, is facing a dilemma on whether it should proceed with the project or terminate it altogether, as either option will see the government saddled with huge financial costs.
“We are negotiating - formally or informally - with them (the Chinese). To them, this is a profitable contract, so they are reluctant to make changes,” he said.
PH had, in its election manifesto, pledged to terminate the project as it said the contract and loan terms were unfavourable to Malaysia.
“But this is not easy as we were bound by the contract and could not terminate the project easily as we have no money to pay China… We have paid a lot of money to China after the postponement,” he was quoted as saying in the Dec 31 interview.
The RM81bil ECRL project was approved by former prime minister Datuk Seri Najib Tun Razak’s cabinet in October 2016. The construction was slated to be carried out by China Communication Construction Company Ltd (CCCC), with Export-Import Bank of China (Exim Bank of China) financing the project.
Malaysia was allowed to secure part of the loan from Exim Bank of China on the condition that CCCC builds the 688km rail link that would connect Port Klang in Selangor with Pengkalan Kubor in Kelantan.
Meanwhile, Dr Mahathir upheld that ECRL was a waste of money as the government would not get any returns from the rail project, and that there is no way for Putrajaya to tax the concessionaire.
He also cited the West Coast railway line, from which he claimed the government never made a single sen, despite its heavy usage.
“Along the ECRL route, there are less people and the people are mostly poor - not doing big business like the people along the West Coast railway line - so you cannot get your investment back.
“The returns from the project are close to ‘zero’ and we need to pay a RM55 billion debt,” added Dr Mahathir.
In the interview, he also denied claims that he was “pro-Japan, anti-China“, maintaining that he had even gone as far to defend China in a forum he attended in Japan.
“They asked me of my feelings on China. I said that Malaysia is always in touch with China and we are trading partners. We are always friendly to China,” he said.
Dr Mahathir also noted that China first arrived in Malaysia for trade centuries ago but it never colonised Malaysia, unlike the Portuguese.
“So, which countries should (you) fear? China or Europe?” he asked.
“The Chinese people used to know me as their friend. Now, I am said to be not friendly to them, just because our government is reviewing the ECRL and Trans-Sabah Gas Pipeline (TSGP) projects?
“The Chinese government understands our financial problems. It is not that we don’t want (these projects), but (these) are bad projects in the first place and we cannot afford them,” Dr Mahathir said, adding that he would travel to China if it was necessary.
He also said that Putrajaya will not return the two giant pandas, given to Malaysia by China on May 21, 2014, earlier than the date agreed by both countries.
“No, this is a gift,” he said, while noting the pandas are a meaningful symbol of the bilateral relations between China and Malaysia and that Malaysia would treat the pandas with care.
He said the Cabinet has never discussed the matter and he knew nothing about the statement made by Water, Land and Natural Resources Minister Dr Xavier Jayakumar.
Dr Xavier said in November that Putrajaya would discuss with the Chinese government the status of the Giant Panda Conservation Programme in 2019, over its cost.
“The negotiations will have to be carried out with the China Wildlife Conservation Association on whether to continue keeping the giant pandas with the second cub,” said Dr Xavier, adding that the government spent RM4.6 mil for the pandas in 2018.
He added that the cost of managing the pandas is expected to increase to RM7.38mil in 2019.
Source: New Straits Times | 2 January 2019
Tiada ulasan:
Catat Ulasan