Thursday, March 28, 2024

Transport minister: Malaysia open to extending China-led rail project to Thai border





Transport minister: Malaysia open to extending China-led rail project to Thai border




Transport Minister Anthony Loke said yesterday the government was open to proposals to extend the track to the border with Thailand, for further integration into existing railway networks or future infrastructure developments. — Bernama pic

Thursday, 28 Mar 2024 1:29 PM MYT


KUALA LUMPUR, March 28 ― Malaysia's government has said it would consider extending a US$10 billion (RM47.3 billion) China-led rail project to its border with Thailand to boost economic ties between the Southeast Asian neighbours.

Part of China's Belt and Road Initiative, the 665-kilometre (413-mile), RM50.27 billion railway is on track to connect the east and west coasts of peninsular Malaysia by the end of 2026.

Malaysia's Transport Minister Anthony Loke said yesterday the government was open to proposals to extend the track to the border with Thailand, for further integration into existing railway networks or future infrastructure developments. He did not provide further details.


“When the connectivity of railway tracks between Malaysia and Thailand can be modernised and improved, the movement of cargo and passengers between the two countries will become faster, thus stimulating economic growth,” Loke told Malaysia's Senate.


A spokesperson for Thailand's transport ministry did not immediately respond to a request for comment.

The original rail link was first proposed in 2017 and is being constructed by the Malaysian unit of China Communications Construction Co Ltd. It was 60 per cent complete as of March, according to Bernama state news agency.

Thailand also has plans to invest in a massive land bridge project in the country's south to boost growth and global trade. The bridge would bypass the congested Strait of Malacca, a narrow sea lane between Malaysia and Indonesia.

“Rather than a zero-sum game of competition, (Malaysia's) ministry of transport is confident that Malaysia and Thailand can explore closer cooperation in the areas of transport and national development for long-term mutual benefit,” Loke said. ― Reuters

2 comments:

  1. Time will tell,, but all the indications are the ECRL will be a heavy debt burden , not a nett benefit for Malaysia.

    This is a classic Belt and Road case.

    China gains the all the direct profits from the Construction including monopolising the building material, construction contracts, all the railway equipment.

    Malaysia will be saddled with holding the Risks from Financial Capital and Operational Costs, Business volume.

    The debt to China entities will be repayable 100% plus interest in full, else Malaysia will have to sacrifice parts of its sovereignty , just like Sri Lanka , Laos and Pakistan.

    One side gets all the direct profits, the other party holds all the risks.

    I also know how to run this kind of businesss.

    ReplyDelete
    Replies
    1. U know how to run this kind of businesss?

      The same inconsequential fart about debt trap initiation!

      Delete