Malaysia is to relaunch a Chinese-backed rail deal after it was cancelled a year ago by Prime Minister Mahathir Mohamad.
The government pulled back from the deal last year because of concerns over its $16 billion cost.
“The renegotiation for East Coast Rail Link (ECRL) has resulted in greater cooperation between Malaysia and China,” said Malaysia transport minister Anthony Loke.
The relaunched project will kickstart work on tunnels and viaducts along part of the route, from Dungun in Terengganu to Mentakab in Pahang. After months of negotiation, China agreed to slash the cost to $11 billion and also agreed to an equal partnership joint venture to operate the line.
The new ECRL project will have the routes shortened from the original plan of 688 kilometers, and is expected to be completed by December 2026, connecting Kota Baru to Putrajaya in four hours.
Loke affirmed that the new rail deal will benefit the Malaysian economy, and will generate opportunities for local companies, as well as local employment and training programs for young Malaysians. It is expected that 70 percent of the employees on the project will be local workers.
The Malaysian government will also take into consideration the environmental impact of the railway construction.
Earthworks and excavations have begun on several ECRL tunnel portal sites including the 871 meter-long Dungun Tunnel, 1.1 kilometer Paka Tunnel and 2.8 kilometer Kuantan Tunnel, while site-clearing and pile-tests for viaducts are being carried out along the Terengganu coast.
The relaunching of the rail deal has reinvigorated Malaysian-Chinese ties. Dr. Oh Ei Sun, senior fellow at the Singapore Institute of International Affairs, told Arab News that the relaunch signals a rewarming of their bilateral relations, with a string of high-level visits in both directions.
“When the railway is completed, brand new townships will spring up as well, and the economic stimulus the railway will bring would be almost instantaneous,” said Oh, adding that the new project would bring financial benefits to both Malaysia and China in the long run.
“ECRL is supposed to be part and parcel of Belt and Road Initiative, at least from the Chinese perspective. So they will be most happy to see the construction works resumed,” he continued. “It is also shorter, cheaper and involves more local participation for the Malaysia side.”
