THE government should cancel the East Coast Rail Line (ECRL) project if it incurs more losses, and focus instead on socioeconomic development in the East Coast, said prominent economist Jomo Kwame Sundaram.

He said the problem of clean water, sanitation, and floods in Kelantan has long been in need of immediate attention.

Jomo said the existing transportation system in the East Coast, such as land and air routes, was sufficient without the need for a high-speed train.

“The project will not develop the East Coast, so (aborting the ECRL) will not mean neglecting the East Coast. It’s a trick used by certain parties to save for a fake project.

“From the time it was drawn up, the project was meant to rake in profits and wealth for certain quarters, perhaps with the aim of covering up 1MDB’s fraud and losses,” he told reporters when met at a luncheon talk for media editors and practitioners in Kuala Lumpur today.

Jomo said the issue involving the RM81 billion project was very complicated as it involved many outside parties and much of the country’s assets needed to be rescued in the interest and development of Malaysia.

He said it was better to cut losses and save the country’s finances, but it was not easy as the amount of loans taken was quite large.

“The government needs space and time to solve this. The authorities need to unite and deal with the outside parties involved to trim the losses and salvage as much as we can,” he said.

Prime Minister Dr Mahathir Mohamad said yesterday that negotiations on the project were still ongoing and that no decision had been made yet.

He said paying compensation was still a better option than proceeding with the mammoth project, which may impoverish the nation. – Bernama, January 30, 2019.