According to reports, Malaysia has accepted an estimated construction cost increase of nearly 14% for the controversial East Coast Railroad (ECRL) project. The cost of the project has been revised from the previously determined US$10.63 billion to US$12.08 billion. The Malaysian East Coast Railway High-speed Rail Project is a key railway project under China's flagship project, the Belt and Road Initiative, and is planned to connect the east coast of Malaysia with the west of the country.

Due to the high related costs, the construction of the East Coast Railway was suspended in 2018. The Malaysian government subsequently signed a new agreement, which radically reduced the scale of the project and reduced the cost by a third to US$10.63 billion. In addition to adjusting project costs, the latest revision also increases the length of the route from 640 kilometers to 665 kilometers.

The project was constructed by the Malaysian branch of China Communications Construction Corporation. Once completed, the Malaysian Railway Network (MRLSB) will operate the line at a 50:50 ratio with a joint venture established by CCCC. In a statement, Malaysia’s Minister of Transport, Wee Ka Siong, said that these changes have improved “the feasibility of high-speed rail projects and will provide further economic, environmental and social benefits”.

Construction works have been resumed, and the project connecting the east coast city of Kota Bharu and West Coast Port Klang is expected to be completed within seven years. According to the Ministry of Railways, as of the end of March, the project has completed about 21.4% of the construction. The Malaysian East Coast Railway High Speed Rail Project is the largest economic and trade project between China and Malaysia. Editor/Huang Lijun