Malaysian Prime Minister Mahathir Mohamad has cancelled two Chinese-funded major construction projects for a railway line and a gas pipeline in his country. These projects, estimated at $22.3 billion combined, were awarded to Chinese construction companies by the previous government in Kuala Lumpur.
One of the scuttled projects is the $20-billion East Coast Rail Link (ECRL) connecting Kuala Lumpur to Singapore over a stretch of 350 kilometers. It is being funded by the government-owned Export and Import Bank of China. The second project to be scrapped is the $2.3 Trans-Sabah Gas Pipeline (TSGP). The project comprises a 662-km gas pipeline serving Malaysia's Kimanis to Sandakan and Tawau areas.