Malaysia revives massive rail project

Kuala Lumpur: Malaysia has said a major Chinese-backed railway had
been revived following a deal to cut costs, lifting a suspension
slapped on the project when a corruption-plagued regime lost power
last year.The railway was among several infrastructure projects in
Malaysia supported by Beijing but put on hold after the shock
defeat of a coalition that had ruled the country for six
decades.Critics said the projects lacked transparency, could saddle
the government with debt, and were in reality aimed at quickly
funnelling money to former leader Najib Razak to help him pay back
cash looted from a sovereign wealth fund.After months of
negotiations between the Malaysian and Chinese governments and the
companies involved, a new agreement was reached to resume the East
Coast Rail Link, the Malaysian prime minister´s office said in a
statement.The cost of the rail link, which will connect Malaysia´s
east and west coasts, was reduced to 44 billion ringgit ($10.6
billion dollars) from its original price of 65.5 billion ringgit,
it said.”This reduction will surely benefit Malaysia and lighten
the burden on the country´s financial position,” said the
statement. Malaysia´s new administration inherited a mammoth
national debt.
Source: FS – All-News2-Economy
Malaysia revives massive rail project