Tags: AS | Malaysia | China | Rail Link

Malaysian Leader Says China-backed Rail Project Too Costly

Tuesday, 29 January 2019 05:38 AM

KUALA LUMPUR, Malaysia (AP) — Malaysian Prime Minister Mahathir Mohamad says that a multi-billion-dollar rail link project backed by China would "impoverish" the country, saddling the government with excess debt for the next 30 years.

Since winning a historic vote last May, Mahathir's government has axed or reviewed large-scale infrastructure projects to rein in surging national debt that it blames mostly on corruption in the previous government.

But there is confusion over the status of the $20 billion East Coast Rail Link. Mahathir's comments Tuesday suggested it might be canceled.

Mahathir said the government "just cannot pay" as the project cost could exceed 100 billion ringgit ($24.3 billion). He said paying compensation would cost less.

A Chinese government spokesman in Beijing said the project was agreed to "on the basis of mutual respect and equality."

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Malaysian Prime Minister Mahathir Mohamad says that a multi-billion-dollar rail link project backed by China would "impoverish" the country, saddling the government with excess debt for the next 30 years.Since winning a historic vote last May, Mahathir's government has axed...
AS,Malaysia,China,Rail Link
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2019-38-29
Tuesday, 29 January 2019 05:38 AM
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