AS BN CRONY MMC-GAMUDA PLAYS UP LOSS OF JOBS, GUAN ENG REVEALS THE ‘BILLIONS SAVED’ FROM RE-OPENING OF MRT2 WILL ALLOW GOVT TO CHARGE CHEAPER FARES

KUALA LUMPUR – The billions the federal government shaved off the cost of the MRT2 by reopening the project for tender will directly benefit users by keeping ticket prices low, said Lim Guan Eng.

In his speech at the “Malaysia: A New Dawn” investors conference, the finance minister said the move will also help with the government’s finances.

“As announced two days ago, we managed to re-negotiate the project’s total scope cost for its above ground contracts from RM22.6 billion to RM17.4 billion,” he said.

Keeping the project’s cost under control will also help its viability as a major mode of public transport, he explained.

He reiterated that the Pakatan Harapan government was not averse to large infrastructure projects, but said these must be evaluated for their immediate benefits to the country’s economy and productivity.

Lim said the government would retain projects that meet such criteria, as long as the costs are reasonable and there is no unnecessary deviation or expansion of scope.

He cited another rail project, the LRT3 line, in which renegotiations resulted in the projected cost going from RM31.6 billion to RM15.6 billion. – https://www.malaymail.com

MRT2 workers in limbo after MMC-Gamuda’s contract terminated

WORKERS involved in the underground portion of the Mass Rapid Transit 2 (MRT2) project connecting Sungai Buloh-Serdang-Putrajaya are uncertain about their work future.

Muadh Mohd Nazlee, one of the project engineers affected, said so far, MRT Corporation had not issued any official stop work order.

“We do not know whether to proceed with our work or to stop. All we know is that we have to be prepared for the worst and that all of us will have to look for work somewhere else,” he told Bernama.

On Sunday, Finance Minister Lim Guan Eng said the cabinet had decided to terminate MMC-Gamuda’s contract to build the underground portion of the MRT2 project, adding that the unfinished work would be re-tendered via an international open tender process.

Lim said the decision was part of a cost-saving exercise as the government would save RMM5.22 billion, or 23% of MRT2’s construction cost.

However, MMC-Gamuda said about 20,000 personnel from a supply chain of over 600 Malaysian companies would lose their jobs following the termination, including more than 3,000 employees of MMC-Gamuda’s joint-venture company, of whom more than 60% are Bumiputeras.

Expressing hope that the government would reconsider the decision, Muadh said that it was completely unexpected.

“It is all too sudden, too fast. The announcement was made on Sunday and now, we are left hanging,” he said.

He also said the full-time workers are not the only ones affected, as those under the Tunnelling Training Academy (TTA) that was set up by MMC-Gamuda to train local talent to conduct high-skilled construction works was also affected.

“It is clear that everyone is worried about their future. They are hardworking people and all of TTA’s employees are locals.

“Imagine if we are scrapped from being the main contractor, will all the hard work done by them to build for the future be for nothing?” he asked. – Bernama

MALAY MAIL  / BERNAMA