Malaysian exporters should leverage in US-China trade war

Malaysian exporters should leverage in US-China trade war

The suspension came just a day after Malaysia Finance Minister Lim Guan Eng called for a sharp price reduction to the 428-mile East Coast Rail Link, after discovering that the project's actual cost is $20 billion (81 billion ringgit), almost 50 percent higher than what was estimated by the previous government.

Malaysian and Chinese officials are in talks for Prime Minister Tun Mahathir Mohamad to visit Beijing soon, two sources with knowledge of the discussions told Reuters.

The groundbreaking ceremony for the ECRL in August past year officiated by former prime minister Datuk Seri Najib Razak.

Najib was charged Wednesday for criminal breach of trust and corruption arising from investigations into alleged graft at the 1MDB state investment fund.

The project is a key part of China's regional Belt and Road infrastructure initiative connecting Malaysia's west coast to rural eastern states.

The multibillion-dollar rail line was supposed to connect Malaysia's east coast to the capital, Kuala Lumpur, and Thailand.

Mahathir wants to renegotiate the terms of those deals with Beijing.

More news: Harry Potter author sends Trump unending laughs
More news: Apple Reportedly Releasing Five New iPhone Colors
More news: Andrew Gillum: Abolish ICE 'in its current form'

Since taking office, Mahathir has pledged to review major projects agreed by the scandal-plagued Najib administration, saying they did not benefit the country economically.

The Financial Times reported that Malaysia has also suspended two China-backed pipeline projects this week, citing a senior Malaysian Finance Ministry official.

"We hope to reduce costs a lot, because of a lot of wrong things [are] being done", he said at a news conference in June, referring to the East Coast Rail Link and the billions Malaysia would have to borrow from China to finish it.

Lim said the Chinese contractor, state-owned China Communications Construction Company (CCCC), would have to make a "drastic price reduction" for the scheme to go ahead. The indefinite suspension could cause additional costs, losses and damages, the company said.

"We are upset and concerned about the livelihood of our 2,250 local staff, as well as several hundred sub-contractors, suppliers and consultancy firms".

"This suspension shall take effect immediately and will be in force until further instruction from us", said the letter signed by MRL chief executive officer Datuk Sri Darwis Abd Razak. He said the government has paid 8.3 billion ringgit ($2.1 billion) to the China Petroleum Pipeline Bureau but it has completed only 13 percent of the work. The Malaysian authority is also reviewing other large infrastructure projects financed by China, according to the Associated Press.

Related Articles

  • 3 people who went missing at Shannon Falls found dead

    3 people who went missing at Shannon Falls found dead

    Within hours the video had been viewed by more than 150,000 people and people had posted more than 1,600 messages of condolence. At the time, the group was visiting Shannon Falls , Canada's third-highest waterfall, which is located in British Columbia .
    Tennis Star Andy Murray Withdraws From Wimbledon

    Tennis Star Andy Murray Withdraws From Wimbledon

    Asked if he could have pulled out from Wimbledon , Murray told Sportsweek on BBC Radio 5 live: "Yes, it is still possible". Tomorrow, Roger Federer will take to Center Court to get the famous championships at SW 19 underway.
    US envoy Pompeo to return to North Korea this week

    US envoy Pompeo to return to North Korea this week

    The trip will the Secretary of State's third to North Korea this year, having previously visited the country in April and May. Heather Nauert made the comment on Tuesday ahead of Secretary of State Mike Pompeo's visit to Pyongyang later in the week.
  • Thailand cave rescue: Boys 'can walk but can't dive yet'

    Thailand cave rescue: Boys 'can walk but can't dive yet'

    However, cave rescue specialists have cautioned against that approach except as a last resort, because of the dangers it poses. Thai divers would lead the mission and United States divers would preposition oxygen tanks, the U.S. official said.

    Fans freak out as Carmelo Anthony looks set for Thunder exit

    For one, there's the money, and two, there's Anthony's reluctance to play more of a reserve role. He moved to power forward and had the ball in his hands far less than he was accustomed to.
    Brazil left-back Marcelo likely to be fit for Mexico clash

    Brazil left-back Marcelo likely to be fit for Mexico clash

    Maybe the mattress in the hotel was softer than usual. "He could not continue in the game, because his muscles became locked up". Marcelo's exit marks the latest in a Brazil side beset by injuries for this World Cup .
  • Anthony Bourdain worth $1.21M at the time of his death

    The court will appoint a guardian ad litem to represent their daughter Ariane's interests, because she's a minor. The will says that if Ariane had died before Bourdain, her nanny Myra Quizon would have received that money.
    Sochi oracle otter predicts victor  of Russia-Croatia match

    Sochi oracle otter predicts victor of Russia-Croatia match

    None of the teams in this side of the draw would have begun the tournament with realistic expectations of reaching the final. The biggest sports tournament in the world comes with some of the most heartbreaking moments for fans and players alike.
    Sales of Micron Chips Blocked in China Amid Trade Tensions with US

    Sales of Micron Chips Blocked in China Amid Trade Tensions with US

    The chipmaker said it would comply with the ruling, but would request the court to reconsider or stay its decision. Beijing is holding up United States chipmaker Qualcomm's proposed $44 billion takeover of NXP Semiconductors.
  • Hawaii bans sale of sunscreens with coral-harming chemicals

    Hawaii bans sale of sunscreens with coral-harming chemicals

    Oxybenzone and octinoxate, which are in most sunscreen products, are believed by scientists to be toxic to coral reefs . Critics say there aren't enough independent studies supporting the assertion that the chemicals harm coral reefs.
    The Meghan Markle British Accent Uproar Needs to Chill

    The Meghan Markle British Accent Uproar Needs to Chill

    Kensington Palace explained last night the Your Commonwealth Youth Challenge gives young people of the Commonwealth a voice. The event marked Prince Harry's first official undertaking in his new role as a Commonwealth Youth Ambassador.
    Sweden are easy to analyse, difficult to beat - coach Andersson

    Sweden are easy to analyse, difficult to beat - coach Andersson

    Last time out the Scandinavian side booked their last eight spot by beating Switzerland 1-0 thanks to a goal from winger Emil Forsberg.