Malaysia and China Give Go Ahead to East Coast Rail Link

Malaysia and China have given the go ahead to the East Coast Rail Link (ECRL) at the cost of US$10.6 billion. After months of negotiations, both countries slashed over 30 per cent of the initial projected cost for a shorter route.

According to a statement by the Malaysian Prime Minister's Office (PMO), the supplementary agreement was signed after talks involving the two governments and their respective companies. It said the construction cost of phases 1 and 2 of the ECRL has been reduced to US$10.6 billion. The supplementary agreement covers the engineering, procurement, construction and commissioning aspects of the ECRL.

The Malaysian PM's special envoy Daim Zainuddin said the new link is 648km, about 40km shorter. He said the cost is now RM68 million per km, instead of the previous RM98 million per km. "The money saved will be enough to build two Petronas Twin Towers. The ECRL will not go through Gombak. The revised line will be Kota Baru-Mentakab-Jelebu-Kuala Kelawang-Bangi/Putrajaya-Port Klang."

In 2018, the PM Mahathir Mohamad had vowed to renegotiate or cancel the Chinese projects that had been authorized by his predecessor Najib Razak.