Dithering over ECRL decision due to fear of Beijing pushback, says report

China Communications Construction Company and the Exim Bank of China may demand compensation and penalties amounting to as much as RM20 billion should the Malaysian government cancel the East Coast Rail Link project. – The Malaysian Insight file pic, January 28, 2019.

FEAR of retaliation from Beijing could be one of the reasons for the lack of a coherent response from the Malaysian government to the question of whether it would proceed with the RM81 billion East Coast Rail Link the Straits Times reports

Cancellation of the project contracted to the state-owned China Communications Construction Company could provoke “tough” actions from Beijing, such as suspending its contract to purchase palm oil from Malaysia – a move that will hurt producers like Felda, which is already financially strapped. 

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