M’sia’s East Coast Rail Link costs ‘much more’ than S$18.6 billion, says former finance minister

KUALA LUMPUR — Malaysia's East Coast Rail Link (ECRL) project actually costs more than the announced price tag of RM55 billion (S$18.60 billion), Council of Eminent Persons member Tun Daim Zainuddin said on Friday (May 18).

The former finance minister said following discussions with the ECRL team, it was found that the investment value of RM55 billion only covered Phase 1 of the project, and revealed that Phase 2 will cost an additional RM11 billion.

“ECRL is not RM55 billion. That is only for the first phase. For the second phase, there is another RM11 billion.

“Adding that up with the interest rates... it could probably be much, much more than that. These are the figures that I got from the team but let the government announce it,” he said at a press conference.

When asked by reporters whether the cost was reasonable, Mr Daim simply answered: “I was in Kelantan, and they said they prefer the money."

The ECRL is one of the mega projects under the previous administration of Datuk Seri Najib Razak.

China will build and provide financing for the ECRL, a rail project spanning four states. The deal for the 600km railway line connecting Klang Valley to the east coast of Peninsular Malaysia was announced during a visit to China by Mr Najib in 2016.

Mr Najib had previously described the ECRL as a game-changer to boost the country’s economy, adding that it will greatly benefit those living in the rural areas in the east coast states.

However, the current Pakatan Harapan administration, headed by Prime Minister Tun Dr Mahathir Mohamad, had said it will review all mega projects struck during Mr Najib's tenure.

On another matter, Mr Daim is also unperturbed over the possible downgrade of the country’s credit rating.

Citing the economic situation in the United States as an example, Mr Daim said credit rating agencies are free to give their assessment but it may not reflect the actual situation.

“I’m not really concerned about anything the credit rating agencies say. In 1998, they downgraded us also.".

“Just see what happened in America, they are given high rating but still… subprime loan. Don’t worry about them. In fact, you should not even worry about the discussions that the think-tanks are having here.” MALAY MAIL