MRT2 workers can be rehired, says Guan Eng

Asila Jalil Asila Jalil Updated 5 years ago · Published on 9 Oct 2018 6:00PM · 7 Comments

Finance Minister Lim Guan Eng says the government only wishes to save a few billion ringgit on the MRT2 project. – The Malaysian Insight pic by Kamal Ariffin, October 9, 2018.

MASS Rapid Transit Line 2 (MRT2) workers who will lose their jobs as a result of Putrajaya’s move to cancel the underground portion of the project and issue a new tender can get new jobs when a new contract is awarded, the finance minister said today.

“Many of these workers can be employed when the contract is awarded. The project continues. But hopefully at a cheaper price. It can also be Gamuda or it can be another company,” Lim Guan Eng told reporters on the sidelines of the Malaysia: A New Dawn investment forum in Kuala Lumpur today.

The announcement on Sunday on the cancellation of the underground component of the MRT2, which is 40% completed by MMC-Gamuda, led to an outpouring of frustration by project workers.

Gamuda said 20,000 people stand to lose their jobs.

The decision saves the government RM5.2 billion as part of its cost-cutting exercise to tackle the national debt of RM1 trillion inherited from the previous government.

MCC-Gamuda will continue work, however, on the above-ground portion of the MRT2 line that connects Sg Buloh to Serdang and Putrajaya.

“We are not cancelling the project. I think you must understand that this project continues but we want to get a better price,” said Lim.

He added that workers are still needed to complete the above-ground section of the line.

Construction workers on a platform at the Mass Rapid Transit (MRT) rail project in Kuala Lumpur in June 2014. The RM23 billion public rail transport project aims to ease the traffic congestion in the city and has a new extension. – EPA pic, October 9, 2018.

When asked if the project can be completed within its targeted date, Lim said his office will issue an official statement soon.

The MRT2 line is expected to be operational by July 22, next year, and cater to up two million commuters. 

MMC-Gamuda will continue work on the above-ground portion of the MRT2 at a reduced price of RM17.42 billion, instead of the original RM22.64 billion.

Lim previously said the 23% cost reduction would not affect any above-ground station.

Meanwhile, MMG-Gamuda said it has not received official confirmation of the ministry’s decision to cancel or issue a new tender for the underground portion of the project. – October 9, 2018.

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Comments

  • LGE. becareful with your action..rumblings on the ground. Work wt current partners and find a solution. 20k staffs is massive and could have repercussions on economy, which by the eay is not good...since Pakatan took over.

    Posted 5 years ago by . . · Reply

  • Its a commercial matter for all parties concern to revisit and iron it out without effecting the workers.

    Posted 5 years ago by Teruna Kelana · Reply

  • Rakyat shld not blame the current govt Rakyat shld blame BN n UMNO For making people jobless What we are Suffering now is caused by Najib led govt. we All Pray to see najib n rosmah in orange soon . Rakyat curse n suffering wont go vain.

    Posted 5 years ago by Tharan Singh · Reply

  • To change contractor midway in such a complicated underground works wouldnt happens overnight , it take 1-2 years to go through the re-tendering & approval to award process . Do you expect the several thousand of workers & professional engineers to wait at home for the new appointed contractor to hire them ? An the current market absorb such a huge work force before the work resume ? Moreover , if the job will be taken over by foreign contractor , they will bring in their own resources from oversea as far as they can, local industry will not benefit from this arrangement.

    Posted 5 years ago by Eric Foong · Reply

    • I agree. Will it be a condition of award that the successful tender must offer jobs to at least 80% of those retrenched? How will these 20,000 workers feed their families while the tendering process goes on?

      Posted 5 years ago by Yoon Kok · Reply

  • On hind sight... I feel for the 20,000 people who stand to lose their jobs.. but looking at the bigger picture what the government is doing today is attempting to save the country from bankruptcy! That is a far bigger catastrophe one can ever imagine! We dont want a situation faced by countries like Greece or Venezuela..
    In its current situation, the country is unable to sustain itself financially for the mega projects it had committed.. Just ask yourselves...? Who brought about this situation and who is to blame? Definitely not the PH government..

    Posted 5 years ago by Thiruchelvam Thirunavukarasu · Reply

    • That 20,000 other people will have to lose their jobs for "the greater good" is a price I am willing to pay. :-)

      Posted 5 years ago by Yoon Kok · Reply