PAKATAN Harapan will halt the controversial East Coast Railway Link (ECRL) project if it takes over power at the next general election.

PH lawmaker Wong Chen said the coalition was not convinced over its economic benefits given its mammoth price tag of RM60 billion to RM70 billion, which made it the most expensive rail project in the world.

“We will go back to China and ask them to explain its multiplier effects because we cannot justify its current cost,” Wong said, adding that the halt did not mean that it will be cancelled.

At the same time, it will honour the agreement on another high-profile rail project, the Singapore-Kuala Lumpur High Speed Rail (HSR), he said.

“But we will renegotiate the terms of that project if we find unconscionable aspects, such as inflated prices and fraud,” said Wong, who headed the PH committee on its Budget 2018.

These pledges form the core of its strategy in dealing with foreign investment from China, whose projects have raised eyebrows for their high prices and allegedly lopsided terms.

The strategy is part of PH’s manifesto that it hopes will win over public support ahead of the 14th general election campaign.

The economic policies were revealed during the coalition’s unveiling of its alternative national budget for 2018.

The ECRL’s route runs from Gombak, Selangor, through to 23 stations in Pahang, Terengganu and Kelantan and is expected to be ready by 2024.

ECRL is a joint China-Malaysia mega-project that is part of the former’s “One Belt, One Road” infrastructure initiative aimed at extending its economic and trade influence in the region.

It is being financed by a loan Malaysia is taking from the Export-Import Bank of China (Exim Bank) and most of it will be used to pay China Communications Construction Company (CCCC), the ECRL’s main contractor.

The presence of Chinese state-owned companies in some of the nation’s biggest infrastructure projects has sparked controversy and claims that the Najib administration is selling the country out.

Besides the ECRL, Chinese state-owned companies are building a RM43 billion port in Malacca while a Chinese energy firm had bought over power plants once owned by state investor 1Malaysia Development Berhad (1MBD).

Wong, who is also Kelana Jaya MP, said a PH government will not hand out economically sensitive infrastructure projects, such as roads, railways, ports and power plants, to foreign companies.

“We are not anti-China but any project must be transparent and commercially driven.”

He said that instead of taking loans from China and hiring them as contractors to build future ventures, its state companies will be asked to be equity partners.

“That way the risk is shared between us and them.”

Saving Felda

PH’s economic policies also include a section on the Federal Land Development Authority (Felda), whose financial troubles have affected its ability to manage the 110,000 settlers in its schemes.

Second-generation Felda settlers have complained of inconsistent harvest payments and lack of transparency over debts.

Felda schemes are spread out over 54 parliamentary seats in the peninsula and their settlers are a crucial voting bloc for the ruling Barisan Nasional.

PH is hoping that brewing discontent in Felda towards Prime Minister Najib Razak will help turn the tide of the Malay rural vote in favour of the opposition coalition.

“PH aims to put Felda back on good financial footing and to return control of Felda into the hands of settlers,” PH said in its economic manifesto.

It proposes to give out interest-free replanting loans of up to RM2,000 per month, introduce a debt-forgiveness scheme of up to 50% and set up a heritage land programme.

The coalition also plans to build new Felda townships and increasing public university enrolment for settlers’ children.‎ – October 26, 2017.