‘ECRL COST MAY EXCEED RM66 BILLION’
Figure derived after meetings with GLCs, GLICs, says Daim
TUN Daim Zainuddin believes that the actual cost of the East Coast Rail Line (ECRL) could exceed RM66 billion. Daim, who heads the Council of Eminent Persons, said the figures stated by the previous administration were “incorrect”.
He said the first phase alone would cost RM55 billion, and this did not include the construction of the second phase, which would cost RM11 billion.
“Factoring in interest and others, there is a possibility that the cost will be much higher,” he said at a press conference here yesterday.
Daim, who is former finance minister, said the new figure was derived after meetings in the last six days with government-linked companies and governmentlinked investment companies, as well as Malaysia Rail Link Sdn Bhd.
“We are faced with the possibility that the repayment is more than what was stated before, as 85 per cent of the mega project is financed by Exim Bank China, which is charging an interest rate of 3.25 per cent,” he said.
On concerns about Malaysia’s credit ratings, Daim said he did not place too much importance on the subject.
“I don’t pay too much attention to ratings. Even when our credit ratings were reduced in 1998, I was not overly concerned.
“What we need to be concerned about is the next 10 years.”
Daim said the Council of Eminent Persons was expected to further discuss the fuel subsidy, Goods and Services Tax, Sales and Services Tax and the abolition of highway tolls in a series of meetings next week.
He said the council would meet with companies owned by the Ministry of Finance Incorporated, including Petronas and the Inland Revenue Board.
On the removal of toll charges, Daim said the outcome would be finalised only after the council met all stakeholders.
He reiterated that the council would honour Pakatan Harapan's manifesto, which was to abolish toll collection.
On the country’s fiscal policies, he said the numbers reported could not be manipulated as they were the accounts that reflected the growth numbers.
“On how sound our fiscal policies are, we have to call the Finance Ministry and get the current situation (of the country’s economic performance).
“Until then, I wouldn’t know,” Daim said.
On the budget deficit, he said the council would gather information and data before making any conclusion on the economic performance.