CHINA URGES MAHATHIR TO OPT FOR ‘FRIENDLY NEGOTIATION’ OF PROJECTS – EVEN AS GUAN ENG WARNS COSTS OF RUNNING ECRL COULD HIT A STAGGERING RM1 BILLION A YEAR

KUALA LUMPUR – Finance Minister Lim Guan Eng has estimated the cost of operating the East Coast Rail Line (ECRL) at between RM600 million and RM1 billion annually if the mega project were to proceed.

He said the construction cost of the project itself is already very high, and which remains a key issue for the federal government in reviewing the project’s viability and feasibility.

“We must bear the potential operating expenditure in mind,” Lim said in the Dewan Rakyat today.

He was answering Ipoh Timur MP Wong Kah Woh who asked why the ministry issued a work suspension notice for the project on July 3, to China Communications Construction Company (CCCC) via its incorporated company Malaysian Rail Link Sdn Bhd.

Lim also answered a query by Maran MP Datuk Seri Ismail Abdul Muttalib, who asked how the government would compensate residents along the East Coast whose now-frozen land was acquired for the project, as well as assist the project’s retrenched local employees.

“Regarding the compensation of landowners, we adhere to the Land Acquisition Act 1960. If no payment has been made since the land acquisition was finalised, then the compensation payment will depend on whatever losses were incurred by its owners.

“However, if the compensation has already been paid then the land belongs to the government, which raises no issues as far as I see,” Lim said.

Lim added that as the employees were not hired by the government but by CCCC, then their compensation must be brought up to and managed by them.

“Whatever the project’s final decision is, the government is ready to provide assistance if needed for the domestic employees.

“But I must point out that there are more foreign employees than domestic ones, whom we cannot help,” he said. – Malay Mail

CHINA URGES MALAYSIA TO ADDRESS PROJECT WOES THROUGH TALKS

BEIJING – China said Tuesday that Malaysia should handle any problems it has with multibillion-dollar Chinese-backed infrastructure projects through talks, a day after the Southeast Asian country’s leader told The Associated Press his government wants to cancel such deals.

The foreign ministry in Beijing defended China’s projects in Malaysia, saying such deals have brought tangible benefits to the two countries.

“Any problems arising in the cooperation should be handled properly through friendly negotiation,” it said in a statement that was faxed to the AP.

Malaysian Prime Minister Tun Dr Mahathir Mohamad said he wants to maintain good relations with China and welcomes its investment, so long as the projects benefit Malaysia.

But he took his toughest stance yet on Chinese-backed energy pipelines and a rail project along peninsular Malaysia’s eastern coast that were struck by his predecessor Datuk Seri Najib Razak.

The projects are part of Chinese President Xi Jinping’s Belt and Road initiative to build ports, railways and other trade-related infrastructure across Asia, often built by Chinese contractors and financed by loans from Chinese state banks.

Belt and Road projects in Thailand, Sri Lanka and other countries have run into complaints they are too costly, give too little work to local companies or might facilitate embezzlement and other graft.

Malaysia’s new government has already suspended work on the projects and called for drastic cuts to their ballooning cost, which it estimates at more than US$22 billion.

Some of that money has already been paid and could be difficult to recoup.

In an interview with the AP on Monday, Dr Mahathir also urged China to respect the free movement of ships throughout the South China Sea and reiterated his call for no warships to be based there.

China’s foreign ministry said Beijing has “always supported the freedom of navigation and overflight in the South China Sea in accordance with international law.”

China and multiple Southeast Asian nations including Malaysia have competing claims on South China Sea islands and reefs — along with the rich fishing grounds and potential fossil fuel deposits around them. — AP

MALAY MAIL / AP