“Cost Too High”: Malaysia scraps multi-billion dollar China-backed rail project

Last Updated: Sunday, 27 January 2019 (13:52 IST)
Kuala Lumpur: A multi-billion dollar in has been scrapped, government officials said, adding that the cost of building it was too high.
Economics minister told reporters, “The cost of the (ECRL) development is too big, so we have no financial ability at this time.”
He said that if the project was not terminated, Malaysia would have to pay an annual 500 million ringgit interest payment.
Malaysia’s previous government under Prime Minister had warm ties with China and signed up to a string of Beijing-funded projects.
But critics say many of these deals lacked transparency, fuelling speculation they were made in exchange for help in paying off debts from a massive financial scandal involving state fund 1MDB.