Renegotiating China Projects: Locals see jobs, economic boost from rail link
Updated 14:04, 19-Aug-2018
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Malaysia's former prime minister said the East Coast Rail Link would be a "game changer" for its underdeveloped eastern region. But Najib Razak lost May's elections and the incoming prime minister, Mahathir Mohamad, suspended work on the 20-billion-dollar project calling it too expensive.
China was largely financing it and a Chinese company was building it. Mahathir said he'll discuss this and other deals with China's leaders when he visits this week. Rian Maelzer reports.
Dozens of trucks sit idle in front of a silent cement plant at one of eight base stations for construction of the East Coast Rail Link. Less than a fifth of CCCC's 2250 local staff are still on the job after Malaysia's government ordered all work suspended on the 688-km line. Most staff from China have also returned home. The project was designed to link the country's big west coast ports to the underdeveloped east coast, where China is jointly expanding a port, and north to the border with Thailand. This town nearest this big base camp was already seeing the benefits.
LOW LONG YANG, CHAIRMAN BENTONG CHINESE TOWN HALL "The CCCC people, they spend money here. It helped the local economy. And also they hired local people, providing job opportunities for the town's young people, giving them new skills."
That is now all up in the air, pending prime minister Mahathir Mohamad's visit to China.
KEITH LEONG, HEAD OF RESEARCH KRA GROUP "It shouldn't be regarded as a rejection. It should not be regarded as we are not going to go ahead with it. It's probably that they want better terms and maybe even to reconceptualize the project."
CCCC has done substantial work since the project's launch a year ago and scrapping the project would cost Malaysia plenty.
RIAN MAELZER PAHANG, MALAYSIA "Aside from the East Coast Rail Link, the new government has also halted work on two low-profile oil and gas pipeline projects being built and financed by China. They were set to cost around $2.3 billion."
The Malaysian government has blamed the high costs and other problematic aspects of the deals on the previous Najib administration, not China. People living along the planned route are hoping for the best.
LOW LONG YANG, CHAIRMAN BENTONG CHINESE TOWN HALL "With the east coast rail link passing through here and a station in Bentong, the whole area would benefit. There would be unlimited opportunities. We really hope the government will push ahead with this project."
Those who'd been working for CCCC, as well as for local subcontractors and suppliers, will hope so too. Rian Maelzer, CGTN, Pahang, Malaysia.