More deals from China following ECRL talks
KUALA LUMPUR: Malaysia’s trade policy adjustments and refinements are expected to result in a higher engagement with Chinese companies, particularly after the recent renegotiation on the East Coast Rail Link (ECRL) project.
Deputy International Trade and Industry Minister Dr Ong Kian Ming said the latest development on the ECRL would have cleared uncertainties among investors and Chinese companies over the country’s trade policies.
“(Prior to this), these companies might have some reservations about coming to Malaysia, but I believe there will be more Chinese companies engaging with Prime Minister Tun Dr Mahathir Mohamad following the recent renegotiation,” he said after the “PM Revisits China: Expectations and Opportunities” forum here yesterday.
The forum was held in conjunction with the upcoming Belt and Road Initiative (BRI) forum in Beijing, scheduled to take place on April 25 and April 26, which will be attended by Dr Mahathir.
“(His attendance) will send a strong signal to other countries participating in the BRI project,” Ong said.
He said other ministers, such as the International Trade and Industry Minister Darrell Leiking, Transport Minister Anthony Loke and Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin, would accompany Dr Mahathir to China.
One of the forum’s panellists, Dr Ngeow Chow Bing of Universiti Malaya’s Institute of China Studies, said Malaysia’s agreement to attend the BRI forum symbolised Malaysia’s support for the initiative.
Dr Mahathir announced on Monday that China Communications Construction Co Ltd (CCCC) would refund RM1 billion of the RM3.1 billion advance payment under the original contract for Phase 2 of the ECRL project to the government within a month.
The refund follows the signing of a supplementary agreement between Malaysia Rail Link Sdn Bhd and CCCC on Friday, in which the 640km project will proceed at a lower cost of RM44 billion compared with the original price tag of RM65.5 billion.
Malaysia Rail Link and CCCC will undertake the project on a joint venture basis.
Ong said Malaysia should explore co-funding models for infrastructure projects, and the renegotiated joint-venture model of ownership and operations between Malaysia and CCCC should be an option for certain projects.
“Rather, the long-term financial sustainability of these projects should be part of the economic calculations,” he said.
Asked whether China would buy more palm oil from Malaysia post-ECRL renegotiation, he said the commodity, as well as agriculture as a whole, was an important part of bilateral activities for the country and the ministry hoped to see continued support for Malaysia’s palm oil products.