Malaysia to Cancel $20 Billion China-Backed Rail Link, Reuters Says
(Bloomberg) -- Malaysia will cancel the $20 billion East Coast Rail Link project with contractor China Communications Construction Co. Ltd, Reuters reported, citing the country’s Economics Minister Mohamed Azmin Ali.
Ali blamed the project’s high cost for the cancellation, while at the same time assuring Malaysia would welcome all forms of investment from China on a case-by-case basis, Reuters reported.
China Communications Construction took steps Thursday to rationalize its workforce following the Malaysian finance ministry’s instruction last year to suspend all contracts related to Malaysia Rail Link Sdn.
Malaysia Rail Link was appointed to oversee the East Coast Rail Link with China Communications Construction as the main contractor. Total cost for the project was expected to reach 81 billion ringgit ($19.6 billion).
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