Daim: Putrajaya 'definitely not okay' with RM10b price reduction of ECRL

KUALA LUMPUR (March 31): Tun Daim Zainuddin has revealed today that it is not true that the government would be satisfied if it can get China to reduce the cost of the East Coast Rail Link (ECRL) mega project by RM10 billion.

"I read that out there, a price reduction of over RM10bil is okay.

"It is definitely not okay with the government," the former chair of the Council of Eminent Persons told The Star in an interview.

He also told the English daily that Beijing understands "that the price needs to be lowered and, post-construction, to assist the government to ensure that it is optimally utilised and does not become a white elephant".

Daim has been chosen to lead Putrajaya’s negotiation team on the currently suspended 688km rail mega project.

"I have said before that infrastructure projects are basically beneficial to any nation. The ECRL is no exception. But it must be built on better terms and bring benefit to Malaysia.

The Chinese government understands this," the ex-finance minister said.

Daim also reiterated the importance of Malaysia-China ties even with the ECRL issue.

"I don’t think it is possible to overstate the importance of ties with China. Both the economic and political relationships matter to Malaysia, that is beyond argument.

"A lot of people are mistaken that the Pakatan government is totally against the ECRL. The actual case is that the Pakatan government is against the ECRL in the form that was signed by the Barisan government before GE14." he explained to The Star.