E-Paper | June 28, 2026

Malaysia says China-backed rail project to resume at lower cost

Reuters Published April 12, 2019
Agreement to reduce the cost of the East Coast Rail Line ECRL to 44 billion ringgit from 65.5 billion ringgit. — AFP/File
Agreement to reduce the cost of the East Coast Rail Line ECRL to 44 billion ringgit from 65.5 billion ringgit. — AFP/File
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Malaysia and China agreed on Friday to resume construction of a multi-billion dollar rail project after months of negotiations that have strained ties between the two trade partners.

They agreed to reduce the cost of the East Coast Rail Line (ECRL) to 44 billion ringgit ($10.68 billion) from the original pricetag of 65.5 billion ringgit, the prime minister’s office in Malaysia said in a statement.

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M. Emad
Apr 12, 2019 12:25pm
Similarly, China-backed CpEC projects could be done at lower cost.
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Sachin Tandon
Apr 12, 2019 12:28pm
Cost has been reduced by 30%, This is the difference between an Honest and Corrupt Prime Minister of a country.
Recommend 0
point of view
Apr 12, 2019 12:47pm
Photo of Indian railway!!!
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hamid shafiq
Apr 12, 2019 12:59pm
that is negotiation our leader should learn.
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krishnan
Apr 12, 2019 01:08pm
review cpec likewise
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pratap
Apr 12, 2019 01:21pm
This photo is from Indian railways ....
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Sabyasachi
Apr 12, 2019 01:35pm
The photo is from Indian Railway. Shatabdi Express.
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INDIAN LOVE
Apr 12, 2019 01:42pm
Indian shatabdi or gatimaan express train is displayed in article.
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AD
Apr 12, 2019 01:42pm
That is a whopping 33% cut. Does that mean that originally it was overpriced? Whether the specs remain same? Is there a similar renegotiation on CPEC possible?
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Truely Hyderabadi
Apr 12, 2019 01:45pm
May be PM should renegotiate CPEC in the interest of Pakistan and make terms public
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Dr. Salaria, Aamir Ahmad
Apr 12, 2019 01:51pm
Great move by the dynamic, honest, hardworking and debonair leadership and brave people of the brotherly country Malaysia. Keep it up and hang on tough.
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tQ
Apr 12, 2019 02:05pm
A mammoth 33% reduction in cost and surely no compromise on quality & safety standards. That is how national interests are guarded. So one can very well imagine the true cost of CPEC!
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Minhaj Khokhar Silicon Valley
Apr 12, 2019 02:14pm
Same model needs to be applied to all CPEC projects with heavy loan burden on Pakistan. GDP is reduced and so are development funds because of high foreign debts. Payments to CPEC per year right now are $143m/yr for the next 30 years. And, this is for the power projects alone. Additional loan charges for rail and roads are coming soon. If Malaysia can renegotiate terms of their projects, why Pakistan should not do so. Pakistan First needs to be the mode of thinking and actions.
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NACParis
Apr 12, 2019 02:18pm
Pakistan should follow Malaysia and sign an agreement with China to modernize its railway system. In Kenya China has rebuilt the infrastructure under an agreement between capital Nairobi and coast reducing the travel time of 500 Km journey from 12hours to 4hours. They have now started extending the line toward the boarder of neighboring Uganda. I believe China will operate the railway for certain number of years and Pakistan can do same. This will save the country from borrowing to built motorways and then mortgaging them,
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Mansur Ul Haque
Apr 12, 2019 02:25pm
Our experience buying and using Chinese locomotive is not good. If Malaysia get satisfied from Chinese rail, we should also follow them.
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fairplay
Apr 12, 2019 02:36pm
By agreeing to the project at a significant discount suggests a good negotiating tactic with the Chinese.
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raj
Apr 12, 2019 02:46pm
Do some home work. Find how much you lost?
Recommend 0
AAN
Apr 12, 2019 02:55pm
How about us do you think all the project handled by chines will be fair. surely not.
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Karam
Apr 12, 2019 04:56pm
Cost of railway shall drop in Pakistan. we need local manufracring for, cars,Motorcycle, trains, cycles everthing to build our country.
Recommend 0
Aimal
Apr 12, 2019 05:12pm
This is what I would call a cool business deal based on economic calculation. Even China has to accept the contention and just can not bulldoze a smaller country. Lessons for Pakistan to learn.
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Just another Dave
Apr 12, 2019 05:16pm
Look at it the other way, instead of 44b it was charged 66b, which means about 50% over and above the price it should have been charged. This, ladies and gentlemen, is China, for you all to see.
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mady
Apr 12, 2019 05:20pm
In present circumstances no choice but to cut size of CPEC projects.
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Must learn
Apr 12, 2019 06:26pm
About 33% reduction in cost after business negotiations. Malaysians are proven businessmen, and they did it. Pak must learn from Malaysia. The IMF and WB hesitation carries weight about awarding loan to Pak that may slip to China, as Pak Govt not good businessmen, besides they have an infamous corruption feather on their caps. Charity begins at home, first recover money from elite and corrupt guys at home, you already have more than 200 Panama list, Swiss list, Dubai and London list, but tolerance beyond expectations is carrying on. No ifs no buts take action swiftly and recover money from corrupt.
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Must learn
Apr 12, 2019 06:29pm
@point of view, Exactly. No big deal. A railway is a railway . We can invite quotations from India too.
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RationalBabu
Apr 12, 2019 08:03pm
@point of view, well spotted. Strange!
Recommend 0
Moin
Apr 12, 2019 08:57pm
Malaysian leadership has spine and that is the reason they could do it.
Recommend 0
Sinbaba
Apr 13, 2019 01:24am
It is also due to the new one 40 kilometer shorter!
Recommend 0

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