WORKERS in the multibillion-ringgit East Coast Rail Line (ECRL) project have been laid off after the Finance Ministry ordered its suspension, said the project’s main contractor today.

China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL), in a statement, said the affected staff members are primarily from non-critical departments.

“The rationalisation exercise has been carried out in accordance with the employment contracts between the staff and CCC-ECRL, and is also in compliance with all international and Malaysian laws and regulations.

“All the affected staff have been compensated fairly and in accordance with the prevailing contracts.”

The statement said CCC-ECRL has offered a salary reduction and non-pay leave to other staff members.

It said as requested by asset owner Malaysia Rail Link Sdn Bhd (MRL), CCC-ECRL has retained a sizeable number of local staff members to secure worksites.

“We are hopeful that the work suspension is only temporary. We wish to continue extending our cooperation and assistance to the Malaysian government and other related authorities during the review of this project.

“We look forward to the lifting of the work suspension order as soon as possible.”

ECRL is a rail link stretching from Port Klang to Pengkalan Kubor, Kelantan. It was approved by the cabinet in 2016, with China Communications Construction Co Ltd appointed as the main contractor.

It is among three projects that have been suspended by the Finance Ministry.

On July 5, Finance Minister Lim Guan Eng announced the suspension of ECRL, the Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP) due to the projects’ slow progress.

The projects were being built by state-owned Chinese companies.

Lim said the decisions, made on Prime Minister Dr Mahathir Mohamad’s instruction, were not targeted at China.

He said Dr Mahathir, after seeking advice from Attorney-General Tommy Thomas, had instructed the Finance Ministry to issue a “suspension notice” for all contracts related to the projects.

“The service and operation ‘suspension notice’ takes effect immediately, until a further notice is issued by the Finance Ministry.

“The decisions are solely directed at the contractors, relating to the provisions mentioned in the agreements, and not at any particular country.”

MRL had undertaken the ECRL project, while Suria Strategic Energy Resources Sdn Bhd, the two pipeline projects. Both companies are wholly owned subsidiaries of the Finance Ministry.

The MPP and TSGP projects, which have a total construction cost of RM9.4 billion, were awarded to China Petroleum Pipeline Bureau on November 1, 2016. – July 23, 2018.