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Full review of mega projects such as KL-Singapore HSR, says M'sia's new economic affairs minister

PUTRAJAYA — Malaysia's new Pakatan Harapan (PH) government will fully review mega projects awarded by the previous administration, such as the Kuala Lumpur-Singapore High Speed Rail (HSR) and the East Coast Rail Link (ECRL), new economic affairs minister Azmin Ali said on Tuesday (May 22).

(Left) Malaysia's new economic affairs minister Azmin Ali said in a tweet on Tuesday that he had spoken with Singapore's Minister for Trade and Industry Chan Chun Sing for about 10 minutes over the telephone.

(Left) Malaysia's new economic affairs minister Azmin Ali said in a tweet on Tuesday that he had spoken with Singapore's Minister for Trade and Industry Chan Chun Sing for about 10 minutes over the telephone.

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PUTRAJAYA  — Malaysia's new Pakatan Harapan (PH) government will fully review mega projects awarded by the previous administration, such as the Kuala Lumpur-Singapore High Speed Rail (HSR) and the East Coast Rail Link (ECRL), new economic affairs minister Azmin Ali said on Tuesday (May 22).

"We want to see all the mega projects approved by the previous administration. We might have to revisit and renegotiate the terms of some of the projects if it isn't implemented yet," said Datuk Seri Azmin, who was sworn-in on Monday as part of Prime Minister Mahathir Mohamad's 14-member Cabinet.

Mr Azmin told a press conference on his first day at work: "Projects that have a direct impact on the public, such as rural infrastructure will be given priority. Any projects that had its approval rushed through just before the (May 9) General Election by the previous administration will have its processes reviewed as well."

Malaysia's Economic Planning Unit (EPU) will advise whether or not these projects are critical to the public even if acceptance letters have already been issued. These projects will likely be axed if they are not critical, as part of the government's austerity move, he added.

PH won the country's watershed May 9 elections, which saw the Barisan Nasional coalition lose power for the first time in six decades.

Separately, Mr Azmin said in a tweet on Tuesday that he had spoken with Singapore's Minister for Trade and Industry Chan Chun Sing for about 10 minutes over the telephone.

"Looking forward to working together on matters of mutual concern," he added without giving further details.

Mr Chan said he congratulated Mr Azmin on his appointment, adding that both of them "promised to work together to strengthen cooperation on both the bilateral and multilateral fronts". He did not elaborate.

Singapore and Malaysia have signed a legally-binding agreement to build the 350km HSR link, which is said to cost up to RM50 billion (S$16 billion).

The tender for proposals to design, build, finance and maintain the rail assets has drawn strong interest from the private sector since it was called last December, with consortiums from China, Japan, South Korea and Europe throwing their names into the hat. The HSR's express service between the two cities is scheduled to start running by Dec 31, 2026.

However, Dr Mahathir has pledged to review all mega projects sanctioned under the former Najib-administration, such as the HSR and the RM$55 billion East Coast Rail Link, labelling some of these as "wasteful" and "unnecessary".

On Monday, the new prime minister expressed alarm at how Malaysia's debt has reached RM1 trillion (S$337 billion), adding that important measures must be taken for the South-east Asian country to quickly recover from the situation.

Mr Azmin said on Tuesday that the EPU had briefed him on the RM1 trillion debt, which caused "major alarm" within the new administration.

He added: "This (debt) has caused a major alarm to the new administration ... we have to look at the details on what contributed to this huge debt of almost RM1 trillion

"Part of it is because the (tender) process was not open or transparent. Most of the projects were off budget. It was not under or part of the national budget." MALAY MAIL

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