Malaysia’s ECRL: Officials flip-flop over future of US$20 billion China-backed project

The administration of Mahathir Mohamad has scrambled to walk back a minister’s earlier comments that the rail link would be scrapped

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A model of a proposed East Coast Rail Link train during the project’s ground breaking ceremony in 2017. Photo: Xinhua

Published: 7:30pm, 30 Jan 2019Updated: 10:30am, 1 Feb 2019

Is the East Coast Rail Link on or off? Malaysians are none the wiser on the future of the controversial China-backed US$20 billion rail project after days of contradictions on the matter by top officials, and on Wednesday the finance minister suggested a definitive answer is unlikely any time soon.

Speaking to reporters after a cabinet meeting, Lim Guan Eng revealed negotiations had entered a “G2G”, or government-to-government, phase and would be held “away from the public glare”.

Malaysian Finance Minister Lim Guan Eng. Photo: AP

This signals Beijing has entered direct talks on the project – previously they were between the Malaysian government and China Communications Construction Company (CCCC) – days after a Malaysian cabinet minister revealed a final decision to cancel the 688km rail link had already been made.

The administration has scrambled to walk back the comments made by Economic Affairs Minister Azmin Ali’s at the weekend with Prime Minister Mahathir Mohamad saying late on Tuesday that talks were ongoing. Hours earlier, however, he had implored the Chinese entities involved to “understand” that proceeding with the project would “impoverish” his country.

Lim, the finance minister, also said on Wednesday that the cabinet had decided to “adopt the statement made by the prime minister”.