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

E-Paper | May 07, 2026

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.

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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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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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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?

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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.

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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!

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Moin

Apr 12, 2019 08:57pm

Malaysian leadership has spine and that is the reason they could do it.