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Opinion | Why Malaysia’s ECRL project should go on, new government or not
- The East Coast Rail Link corridor will help boost foreign investments and offer opportunities for Chinese manufacturers hit by the trade war
- Amid business uncertainty and an economy affected by the coronavirus outbreak, spurring growth is imperative for any incoming government
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As Malaysia is plunged into a political impasse after Mahathir Mohamad unexpectedly resigned as prime minister, there are questions on whether a change in government will lead to yet another review of mega-projects, including the China-backed East Coast Rail Link (ECRL).
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The US$11 billion rail project, which is part of Beijing’s Belt and Road Initiative (BRI), was at first suspended, then reviewed and renegotiated, before being reinstated about a year later.
The review came after the Pakatan Harapan (PH) coalition led by Mahathir defeated the previous Barisan Nasional (BN) government in May 2018. During its election campaigns, PH had criticised China-backed projects for their opaque nature and lack of contribution to the local economy.
As the prospect of another poll hangs in the air, there are both internal and external reasons for the continuation of the ECRL, regardless of changes in leadership.
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Domestically, a new administration would have to act quickly to stabilise a slowing economy from further spiralling downwards. Tourism, and its associated sectors, such as hotels, retail and restaurants, have been negatively affected by the escalating coronavirus outbreak.
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