Scrapping China-linked projects may incur RM36b cost - Wanita MCA veep

The government must find ways to minimise the impact of cancelling various projects, said Wanita MCA vice-chairperson Ong Chong Swen.

Otherwise, she said the cost of cancelling the East Coast Rail Link (ECRL), Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSG), and High Speed Rail (HSR) projects could add up to over RM36.8 billion.

“It is worrisome whether Malaysia is capable of paying for the compensation after cancelling these large-scale projects, and what would the Pakatan Harapan government do to resolve it amicably? The Harapan government needs to address the problem straightaway without any vague expression.

“Since the Harapan government was forced to cancel the projects after taken into account the national debt problem, it is therefore urgent that the Harapan government minimises the impact of cancellation on projects which are underway.

“At preliminary estimation, the cancellation of these four megaprojects will result in a loss of RM36.8 billion or more,” she said.

Previously on Aug 21, Prime Minister Dr Mahathir Mohamad had announced during his visit to China that the ECRL, MPP, and TSG projects would be cancelled. He had announced the cancellation of the HSR project earlier.

In an interview with Malaysiakini this morning however, Mahathir clarified that Malaysia is merely stating its preferred outcome for the three China-backed projects ECRL, MPP, and TSR.

The cancellation is not yet final.

“I said if we can, we would like to cancel it. If we cannot, we would like to defer and look towards other ways of solving our financial problems.

“These are the options. It is not a black-and-white kind of decision. You have to leave room for negotiations,” he told Malaysiakini.

Ong, a senator, asked what the government would do with the RM19.6 billion that had already been paid to ECRL contractors and developers.

Likewise, she said the MPP project in Malacca is already 14.5 percent complete with RM4.7 billion already paid, while the TSR project is 11.4 percent complete with RM3.5 billion already paid.

In addition, the cancellation of the HSR project could see Malaysia pay RM500 million in compensation to Singapore.

“It is urgent for the Harapan government to give a satisfactory explanation on the cancellation, and what actions to be taken so that the people need not donate later on to pay for any massive compensation amount incurred,” she said. - Mkini