Malaysia says still in talks on China-backed rail project

Thursday, 31 January 2019 02:22 - - {{hitsCtrl.values.hits}}

China's Premier Li Keqiang and Malaysia PM Mahathir Mohamad

KUALA LUMPUR, AFP: Malaysia and China are still in talks about a multi-billion-dollar, Beijing-backed railway project, the finance minister said Wednesday, after a week of confusing and contradictory statements about the deal.

Since the shock defeat last year of a long-ruling, corruption-plagued regime in Malaysia, the new government has suspended a series of Chinese-financed infrastructure projects, including the rail line.

Critics said the projects lacked transparency, could saddle Malaysia with debt, and were in reality aimed at quickly funnelling cash to former leader Najib Razak to help him pay back cash looted from a sovereign wealth fund.

At the weekend, Economic Affairs Minister Azmin Ali said the government had made a final decision to cancel the 81 billion ringgit ($19.7 billion) rail link, which would have connected the eastern and western coasts of peninsular Malaysia.

But hours later, Finance Minister Lim Guan Eng expressed shock at the announcement. On Tuesday, Prime Minister Mahathir Mohamad said the project could “impoverish” Malaysia and he was seeking China’s “understanding” -- but also insisted no final decision had been made.

On Wednesday, Finance Minister Lim said that the cabinet had agreed at a meeting that negotiations about the project were indeed still ongoing -- and from now on only Mahathir would comment on the issue. He said the discussions between the two countries would now be held “away from the public glare”, official news agency Bernama reported. “Of course there is a time frame, but let’s discuss the matter in a confidential manner.”

The new administration, which came to power in May after toppling a government that had ruled for six decades, is an uneasy coalition that came together with the principal aim of ousting Najib

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.