Malaysia's suspended East Coast Rail Link could be back on following negotiations with China.
Malaysian prime minister Mahathir Mohamad said negotiations continued with China on the scheme, one in a series of Belt and Road projects suspended last September, due to its value to regional trade.
“If the negotiations are fruitful, the government is confident the project can continue on an appropriate scale, with benefits for the people and saving Malaysia from the burden of large debts,” Mahathir said in Parliament, according to the South China Morning Post (SCMP).
Daim Zainuddin, a retired finance minister, has been chosen to negotiate with China instead of current finance minister Lim Guan Eng, due to his position outside of the government, said Mahathir.
Malaysia trades a high majority of its imports and exports with China and Singapore. In 2017, China made up 16% ($42.5bn) of exports and Singapore made up 14% ($35.7bn). Meanwhile, imports from China amounted to 19% ($38.1bn) and 14% ($28.4bn) were from Singapore, according to data by the Observatory of Economic Complexity (OEC).
Prime minister Mahathir told SCMP in an interview that Malaysia supports the Belt and Road Initiative as an opportunity to increase supply lines between the east coast of Malaysia with logistical shipping routes towards China, Singapore and India.
The prime minister will be attending next month’s Belt and Road Forum for International Cooperation in Beijing, where countries will discuss their approaches towards the infrastructure plan.
The 688km-long East Coast Rail Link project was originally contracted to China Communications Construction Co. However, this was terminated after the 1MDB scandal with former prime minister Najib Razak. Mahathir was subsequently appointed in elections last May.
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