SPECULATION that East Coast Rail Link (ECRL) assets and land ownership will be transferred to China is unfounded, said Transport Minister Wee Ka Siong.

He said ECRL assets are fully owned by the government via Malaysia Rail Link (MRL), while China Communications Construction Company Ltd (CCCC) is the main contractor of the project.

“ECRL assets are 100% owned by the Malaysian government through MRL, and the plots of land along the alignment are non-transferable railway reserves,” he said on Facebook today.

The repayment plan to the Chinese government-owned bank does not involve an asset transfer or a land transfer, he added.

“Any operating loss will be borne 50:50. This proves China’s confidence in ECRL’s operation prospect, which will guarantee the sustainability and quality of its services.”

MRL, a wholly owned subsidiary of the Minister of Finance (Incorporated), signed a memorandum of understanding with CCCC to establish a joint venture company.

The agreement states that MRL will own 80% of the operating profit.

Wee said ECRL fares will be determined by the Land Public Transport Agency and equivalent to existing rates.

The ECRL is scheduled for completion by December 2026, and will traverse the east coast states of Pahang, Kelantan and Terengganu before linking the Klang Valley on the west coast of Peninsular Malaysia. – Bernama, May 14, 2022.