In July of this year, the Malaysian government decided to put a hold on all construction projects on the East Coast Rail Link project citing several bureaucratic hurdles. A couple of months following this decision, Chinese Vice-Minister for Finance Zou Jiayi reportedly said that the Chinese government fully respects the decision of the Malaysian government regarding the project which was supposed to be a part of China's Belt and Road Initiative.
Ms. Zou said that both China and Malaysia have properly communicated the issues regarding the East Coast Rail Link project, according to a report from Reuters. The report added that Ms. Zhou said this in a statement during a summit she attended in Nusa Dua, Bali, Indonesia.
Reuters also quoted Ms. Zou saying, "The debt sustainability issue of Belt and Road is a complicated issue, but we will take care of it."
Over the past few years, China has been heavily pushing for the establishment of the Belt and Road Initiative which the country launched in 2013. This is one of the major flagship project by President Xi Jinping who aims to expand the country's trade borders by linking China to the rest of Asia, Africa, and Europe. In order to achieve this massive undertaking, China has committed to partner nations and poured in financial aid in order to build infrastructures like ports, roads, and railways that will connect China to the rest of the world.
Although the East Coast Rail link project is currently on hold, China Communications Construction Corporation, the lead contractor of the project, is still optimistic about it. The company hopes that the Malaysian government will review the project and eventually give it a green light.
The East Coast Rail Link project is an infrastructure undertaking that aims to connect three major ports in the Malaysian Peninsula. One part of the project aims to connect the Port of Klang located on the Straits of Malacca to Pengkalan Kubor which is located in the northeast region of Malaysia. The second part of the project aims to connect the east coast states of Pahang, Terengganu and Kelantang, and then connect it to Malaysia's west and central regions.
Following the launch of China's Belt and Road Initiative, Malaysia has been considered as one of the top recipients of the Asian superpower's grants. The East Coast Rail Link project is estimated to cost $20 billion, and its setback is one of the rarest to occur since the implementation of the Belt and Road Initiative project.
