PM: ECRL Not Quite Cancelled Yet, All Options Still Being Studied

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Studies are still being carried out on whether to defer the China-backed multi-billion ringgit East Coast Rail Link (ECRL) project or deal with it in some other way, said Prime Minister Dr Mahathir Mohamad on Aug 24. 

  • Some options for ECRL – drop or defer it, or find some other way of doing it without costing so much
  • RM4 billion Trans-Sabah Gas Pipeline suspended since July
  • No loan sought from China
  • Putrajaya still working on yen loan from Japan

“At the moment they are studying whether to defer or to give it to another (party).

“But we have to also negotiate with them (China), if they agree, (then) we can do it,” he said.

The Prime Minister was queried on news reports quoting him as saying during a recent visit to China that the government had decided to cancel the ECRL project for now.

“What I said was if we can, we would drop the project. Or we would defer it.


“Or we would find some other way of doing it without costing so much money,” he told reporters yesterday.

ECRL, the RM81 billion project spanning 688 km linking Port Klang and Kota Bharu, was launched last year and scheduled for completion in 2024.

The RM4 billion Trans-Sabah Gas Pipeline (TSGP), another China-backed project to build a 662 km gas pipeline from Kimanis to Sandakan and Tawau, has been suspended since July.

Queried on whether he had sought a loan from China during his recent visit to the country, Dr Mahathir replied: “No, no…we have borrowed enough from China”.

He was also asked about some reports alleging that Malaysia might not get the yen loan that was sought during his trip to Japan in June.

“Who said that we’re not getting the yen loan? I mean you just don’t go to the prime minister and say ‘please give me a yen loan’ and then he writes a cheque for me.


“It has to be done properly. Now our officers are working on the yen loan,” he said.