Finance Minister: Lower price tag 'necessary' to keep ECRL

Lowering the price tag is "necessary" if the government wishes to proceed with the controversial multi-billion East Coast Railway Line (ECRL) project, Finance Minister Lim Guan Eng said today. 

It was earlier reported that the government is seeking to renegotiate the project with China in the hope of trimming costs.

"(It would be) difficult for us to sustain the project if we have to pay such high costs. Lowering the price tag is necessary.

"The ECRL can continue with a lower price tag...," he replied via text when contacted by Malaysiakini.

He was responding to an earlier report in The Malaysian Insight, in which he had stated that the government had to keep the project – part of China’s ambitious One Belt One Road initiative – as Malaysia had already paid out RM20 billion.

“In the ECRL, we have already paid RM20 billion. So it doesn’t really make sense to just scrap it.

“It’s one of the projects we are looking to renegotiate (the costs),” he was quoted saying in an interview with the portal.

However, the minister had refused to reveal details of the renegotiation, saying the matter must be first discussed behind "closed doors."

In the report, Lim was further quoted as saying that the Pakatan Harapan administration remains "undecided" over the fate of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project, only reiterating that it is being reviewed.

He later told Malaysiakini that reviewing the HSR means that the government wants to cover "all eventualities."

Since taking over the government, Harapan has announced that all deals made with China are under review, which has left the future of several mega rail projects, including the RM60 billion ECRL, uncertain.

The HSR is being shelved for the time being, but will be reviewed for implementation in the future.

Dr Mahathir Mohamad had initially announced that the government was scrapping the HSR, despite the risk of incurring a penalty close to half a billion ringgit.

The prime minister had said the project was too expensive and would bring little benefit to Malaysians.

However, Lim recently said Malaysia would consider reviving the project in a year or two when the country’s finances stabilise. - Mkini