Fast track to savings
PM: We must reduce our borrowings
As the new government announced more goodies, from bonus for civil servants and pensioners to 50% toll reduction during the Hari Raya celebration, the Cabinet has decided to cut waste to stabilise its finances. First to go is the RM40bil-plus MRT 3. Malaysians can also contribute to Tabung Harapan Malaysia to help reduce the country’s deficit.
PUTRAJAYA: The Klang Valley mass rapid transit line 3 (MRT 3 or Circle Line) project, reported to cost between RM40bil and RM45bil, will not proceed, says Prime Minister Tun Dr Mahathir Mohamad.
He also said the Kuala LumpurSingapore HighSpeed Rail (HSR) was still being studied, while a review was being done on the East Cost Rail Link (ECRL).
He said Malaysia was open to reconsidering its decision on the HSR if Singapore could convince Malaysia to proceed with it.
He said the Cabinet had agreed for the rail project to be scrapped, but it would also depend on discussions with Singapore.
“We want to do this as it has high financial implications. But we will listen to them (if Singapore wants to proceed). They are our good partners,” he told the media after chairing the Cabinet meeting yesterday.
He explained that Malaysia needed to reduce its borrowings, hence the decision to scrap HSR and review other mega projects that cost billions of ringgit.
“We have borrowed too much money. If this country is to avoid bankruptcy, we must learn how to manage our big debts by doing away with projects that are not beneficial to the country,” he added.
Later, at a buka puasa event at Putrajaya International Convention Centre, he said the money spent on the HSR project did not justify the number of jobs it could generate.
“If you are going to spend RM60bil to RM100bil so that thousands of people can work, that’s not very efficient,” he said in response to a Facebook post by former prime minister Datuk Seri Najib Tun Razak, who defended the HSR.
Najib, who asked the Government not to make “an emotional decision” to scrap the project, said the HSR was projected to create RM650bil in gross national income and 110,000 job opportunities, which could expand to 442,000 jobs by 2069.
On the fate of the ECRL, Dr Mahathir said the project has not been called off and a detailed review was being conducted.
“We haven’t cancelled ECRL. We have spent a lot of money on it and need to look at ways to handle this matter,” he said.
According to recent reports, the actual cost of the ECRL could be more than RM55bil.
Dr Mahathir also said the 11th Malaysia Plan midterm review would be tabled in Parliament in November along with Budget 2019.
“The review will take into consideration the progress of projects carried out from 2016 to 2018, and the Government’s way forward for the remaining period of between this year and 2020,” he added.
Parliament is expected to start its meeting next month, but Dr Mahathir said the dates had yet to be fixed since the appointment of ministers had not been completed.
On whether the Cabinet had decided on the fate of the National Civics Bureau (BTN), he said the matter was still being studied.
The Prime Minister also said no decision had been made on whether the Department of Islamic Development (Jakim) would be closed.