IT HAS yet to be determined whether China-backed mega projects will be cancelled or deferred, said Prime Minister Dr Mahathir Mohamad upon his return from Beijing.

He told Malaysiakini that the Chinese government had agreed on principle to Malaysia’s financial woes but the details of the project cancellations or deferments would be decided by the respective companies.

Dr Mahathir reiterated that he, personally, would prefer the Chinese companies cancel both projects but that he was also open to negotiations.

“I said if we can, we would like to cancel the projects. If we cannot, we would like to defer and look towards other ways of solving our financial problems.

“These are the options. It is not a black and white kind of decision. You have to leave room for negotiations,” Dr Mahathir was quoted saying.

Among the projects reportedly cancelled were the East Coast Rail Link (ECRL) and Strategic Energy Resources (SSER) pipeline.

However, the 93-year old said the cancellation details were not discussed when he met his Chinese counterpart, Li Keqiang.

“You see, these are details, and details are never discussed by prime ministers or presidents. Most of this work will have to be done by the officials,” he said.

Beijing was not offended by his comments and understood Malaysia’s stand, Dr Mahathir said.

“The Chinese understood. None of them said ‘no’ or anything like that. I explained to all three leaders - the prime minister, the head of the party, as well as, the president.

“They never rejected nor said that it was not right… they all admitted that we have a financial problem which can only be resolved by cutting down expenses,” he said.

Regarding compensation, Dr Mahathir said he was leaving that to the negotiation capabilities of his Finance Minister Lim Guan Eng and Economic Affairs Minister Azmin Ali.

“Their compensation is mentioned in the agreement. I didn’t discuss that because obviously when we do the real negotiations at the official level, we will have to take up that point,” he was quoted saying.

The previous Barisan Nasional government which negotiated the original deals was also criticised by Dr Mahathir for being incompetent and not reading the contract properly.

““It would look as if the people who went there to negotiate with the Chinese were very stupid. They didn’t know what is meant by agreements and contracts and all that,” he said.

The ECRL contractor is state-owned China Communications Construction Co Ltd.

The rail link, if built, would have connected Port Klang in Selangor and Pengkalan Kubor in Kelantan. It had been due to be constructed in two phases.

Various estimates have shown that the China-backed ECRL could be built for less than RM40 billion, but its cost had ballooned to between RM60 billion and RM70 billion. – August 23, 2018.