Malaysia’s decision to engage China to build and finance the East Coast Rail Link (ECRL) was because it was offered the best possible deal, according to prime minister Datuk Seri Najib Tun Razak, in a report by The Star.
The deal includes a seven-year relief from servicing the loan as well as the lowest interest rate, noted Najib. “For seven years, there is no need to service the loan. By then, the ringgit would have appreciated, and the interest would be almost negligible,” he said during a ground-breaking ceremony at the ECRL Tunjung base camp on Wednesday.
The engineering, procurement, construction and commissioning (EPC) contract was awarded to China Communication Construction Company Ltd (CCCC), while the financing agreement will be with the Export Import Bank of China (EXIM). A special purpose vehicle under the Minister of Finance Incorporated, Malaysia Rail Link (MRL), is tasked as the project owner.
The ECRL project will consist of two phases, with Phase 1 of the railway featuring 21 stations running along a 600.3 km route, linking Kota Bharu in Kelantan to the Integrated Transport Terminal Gombak (ITT Gombak) in Selangor, a future interchange for the LRT Kelana Jaya Line.
The East Coast Rail Line will operate on this link, allowing passengers to travel between the two points in less than four hours using the planned inter-city rail service that operates at speeds of up to 160 km/h.
Meanwhile, Phase 2 will have an estimated length of 88 km covering two stretches, with the first from Gombak North until Port Klang, while the other will see a further extension between Kota Bharu and Pengkalan Kubor. In total, construction costs will amount to RM55 billion, which has been allocated by the government during Budget 2017. The ECRL is expected to be completed in June 2024.
Looking to sell your car? Sell it with Carro.
The Rolls Royce’s salesman gave me a very good deal too… but I COULDN’T afford it. I had to politely say No Thank You
If you have land, you can sell it. Everyone has rolls royce nowadays, you should have one too
Luxury ships is the current fad at putrajaya.
Can somebody tell me what will be sent from Kota Bahru to Klang?
Goods, lotsa good. Whole lotsa goods that usually transits at SG.
One man can sign the country away without informing the cabinet or seeking consensus.This is done even without 2/3 majority.
From Kota baru, you can send bags n bags of potatoes,dried cilis,ikan bilis,ikan masin etc ,cement from China.By the way,if you are a passenger with your consignment of goods,you have to get out at Gombak station…only merchandise will go to Port klang..in a big semicircle across Rawang area before going south back to Port klang…
Remember,we may all be gone later,our cucu and cici will have to pay thro taxes.RM55B is initial estimate,excludes delays,land acquisition and extras etc…a cool RM 75 Billion…Bradder…not 75 Juta….This is 10 times the cost of bailing out white elephant protong!!!
Think…you still want it?
The track extends beyond Kota Bahru, not really built for Malaysians. It just can’t be economically sustainable if only Malaysians using them.
The main aim is for cheap goods & labour from further up north, China. Malaysia (and other Asean countries) will become an extended land to an empire. New communities will be set-up. Kuantan already has an example of this.
The best part is, we the Malaysian taxpayers, are paying for this “privelege”, with an obscene amount of money.
After submarine, 1mdb and now…
good from europe n arab country detour ftom singaporr port,sssving container ship 100k of fuel cost pet day, it about seven day from kedah to sail to east cost
Transport ketum frm Kota Bahru.
ECRL is mainly commuting people. There will be many stations along the coast way which is a good thing.
With good road infrastructure in Peninsular, companies will still send goods by trailers from West to East. Typically will arrive in 24 hours and is also the most convenient and flexible way.
MRT1 is short of 50% passengers from their break-even target despite been operating after 1 year.
Is still very depending where do you stay in Klang Valley. Is not always convenient to travel with train and buses.
Long working hour, long traveling time and high traveling cost in doing transits. A lot a lot of transits. Everyday!
So linking Gombak and Kuantan with rail is a waste of public money, in my opinion.
https://paultan.org/2018/03/27/mrt-needs-250000-daily-passengers-to-break-even/
(Like) Support ECRL.
(Dislike) No ECRL
Instead of creating a huge unsustainable nation debt, invest the $55b in say Apple shares.oe US Treasury bonds.. The appreciation or interest alone is enough to subsidize air tickets of any Malaysian a whole lifetime… We don’t need ECRL when the Karak Highway is already making losses as few travel between West coast to East coast
Invest in epal makes money but does not add to country infra. Besides, ECRL isnt mainly for human traffic. Thats just a added advantage that investing in epal cant gip.
As long China the best.
Hehehe. I like your analogy. Specifically, WHO did China offer the Best deal to ??!
Tunnel project. But heard it was a scam. Only got bayar Rm3mil saje…
But actually the previous estimated price was RM30B.
Then awarded WITHOUT TENDER for RM55B
http://www.theedgemarkets.com/article/tony-pua-govts-previous-feasibility-study-shows-ecrls-rm55b-project-cost-should-be-less
Belum tambah train and signaling system. U think its free meh?
Saya Putar , Halim
[Back up, back up – tell me what you’re gonna do now!
Keep rollin’, rollin’, rollin’, rollin’ (yeah)
Keep rollin’, rollin’, rollin’, rollin’ (what?)
Keep rollin’, rollin’, rollin’, rollin’ (come on!)
Keep rollin’, rollin’, rollin’, rollin’]
-Limp Bizkit
I bought a car with 5 years free warranty .. and zero down payment too… only with big bullet payments at the end… I hardly used it… Regretted my decision getting myself into financial commitment on something I don’t need
i still remember jambatan pulau pinang project receiving major flak back in the eighties. waste of rakyat’s money, they said. nowadays its congested. go figure.
Tax the rich so no problem… Oh waittt
And you do remember the complaint is about rakyat money, not the bridge usage! If the cost is lower, nobody bother to complain. Until today, Penang bridge is still picking up $7 per entry. Isn’t it burdening the people?
Tell it to the guy who select Jepunis to build that bridge. Yen appreciated, but he did nothing.
err John…the bridge was built by Hyundai Engineering and Construction Company (Korea) Ltd from South Korea and the United Engineers Malaysia Berhad..not Jepunis
Best deal to the ECRL alright.. but perhaps you forget to mention the incentives given to you
“For seven years, there is no need to service the loan”. Tabouleh DIBS..
http://www.sinarharian.com.my/siasat/ecrl-selangor-belum-terima-permohonan-1.816654
ECRL is a good and long due project. If only we can implement it like HSR thru open tender we might get better even better value. After the very transparent MRT and HSR, ECRL is just a bit opaque.
They have no choice bcos it involved S’pore.
Only 1 party is agreeable to ECRL, China. Tender oso only China dares, others who have SG business dun dare.
For wat…u drive everuday from thre to kl??
55b…ok…so…ask us 1st wat u shld do with 55b…how u shld invest on rakyat to shape this nation for generations..ask if this train is really2 needed now.?? Seriously ? ..55b man..on loan..!.how would it help the nation?…my late old man said to us i dont have much money i cant afford to buy u stuff but i will make sure i give u the best education…threafter u shape yr destiny..dont u tnk tht 55b or even half of tht is better spent on education, reseach…tech…instead of always asking outsiders to build our infra etc..decades have gone..std of education is worst than the 80s..when would the rakyat be given the chance? When or never..god bless
Yes, standard of education must be improved. Eliminate all vernacular schools and transform the national schools into English-medium schools.
Inb4 more local dropouts & lajaks.
Absolutely! LIKE!!!
Me three!
Unless you can show those from vernacular schools perform worse than national schools, your solution does not fix but aggravate the issue of education standard. Now I know your standard of education as you can’t relate and solve the wrong problem!
Must return the favour to Tongsan lah……since Tongsan bailed out 1mdb……..part of the deal…..lol
“For seven years, there is no need to service the loan. By then, the ringgit would have appreciated, and the interest would be almost negligible,” he said during a ground-breaking ceremony at the ECRL Tunjung base camp on Wednesday.
Didn’t know our leaders are so smart.See China is the one being played out.
Yep wise move.Leaders follow VW promo deal.
RM0 downpayment and 0 interest for 7 years.
https://paultan.org/2015/06/08/vw-malaysia-offers-rm0-downpayment-and-0-interest/
I like how the ‘C’ in ECRL is highlighted. Is a win-win deal for Najib and China. After the big boom of the naughties, what infrastructure has been built in China has been built, leaving millions of workers and factory that will be on idle, becoming a bubble. so the best course of action is export. And Malaysia is just ripe for that.
And given that China would just finance for everything to keep its economic machine moving, Najib just have to sit back and relax and wait for the next future leader to deal with our increasing debt to the Middle Kingdom. And once the great Chairman were to ask for his yuan back, Malaysia will be like Sri Lanka and being debt trap into becoming a Economic Neo-colony of China. So a win-win for China and Najib.
Its happen before in history in Malaysia.
Bangsa yang merdeka
Bangsa yang mulia
Sekarang sanggup menjual hak yang sedikit
Untuk mendapat kesenangan tanpa usaha, kesenangan yang sedikit
Maruah dijual
Bangsa dijual
Tanahair dijual
Segalanya dijual
Untuk nikmat yang tidak kekal, nikmat yang sementara yang sedikit sahaja
Ya, like in Penang.
Why So?
No problem. As long loan is denominated in RM and not foreign currency like what happen b4, its in their best interest to ensure stable relationship with MY. Unlike when yen appreciated like heck back then.
You worded my thoughts even better than I did.
AKMA
anak kecil main api
Hahahahahahahahh
Kami suka naik kereta, boleh hisap rokok, jumpa kawan otw balik kampung. nak cepat kami naik flight xde masalah pon!! PM Tak tanya ke orang Pantai Timur nak apa? Kami nak Jalan Raya yang baik dan selesa.
If it’s such good deal, I guess no harm going through open tender right?
Nothing in this nation is open tender bro..lets try to fix it next month.
Open tender, still only China contractors dare to bid. Those who got SG business dealings dun dare. So macam mana?
How u know…dont talkingv kook..nothing is dared…if it truly biz nothing stops anyone..
Everyone knows what this project will do to SG commerce. U think anybody doing projects there will dare upset them? dont talkingv kook
So macam mana nie? China SG double standard. Who owning the land righs here
Of cuz SG will double standard against China. They knows what this project will do to their commerce.
Best deal like they need to bring workers from China to build and operate it instead of employing locals?
Best deal indees
If u r the boss, will u use the tried and tested, efficient and cheap labour or expensive and lazy labour or material for that matter? U think they’re so stupid ah? If they can get better deal here, they’ll go for it.
Make sure the trains and its infrastructure are water proof, do not forget east coast peninsula is bless with yearly flood season
East coast of Malaysia also needs development. If possible, expand up to the east of Johor.
It is time for the eastern part of Malaysia to be developed for the growing population.
We have no money..even kids know this..malaysia dah pokai tahu tak..nak bayar it cellaka naik cukai…gst..levy perkeja…saman..lain222 …tahu tak..
Find a better job instead of whining.
Those at West Coast now bash cuz they jeles who not go thru their side. Its about time development comes to those at East Coast as well.
I don’t know about you guys but I was drawn into this:
“For seven years, there is no need to service the loan. By then, the ringgit would have appreciated, and the interest would be almost negligible”
He can look 7 years ahead and tell that the ringgit would have appreciated. Wonder if he saw that the ringgit sucked for the past few years before it happened?
I guess, this could only mean one thing…sell your Pounds, sell your USD, sell your Euros, sell your SGD and convert them to Ringgit. After 7 years, you’ll probably be able to own a yatch and buy some handbags
You must be one of those small-minded folks who thought that the ringgit dropped because of 1MDB.
Yep.. nothing to do with the massive global drop in oil prices and commodity prices.
Yep.. nothing to do with China depreciating their Yuan to boost exports and ended up dragging down other regional currencies.
Yep.. nothing to do with US Fed increased their interest rate just months after China depreciated their Yuan, thus increasing appetite for the US Dollar and causing it to appreciate against other currencies.
It’s all about lack of confidence in the government and 1MDB to the small-minded folks who don’t know how economies and currency warfare works..
Yep.. and Brunei dollar rising up.
It would be a biased assessment not to mention government fiscal deficit, implementation of gst leading to decrease in consumption and pressure on household debt, and 1mdb scandals which was plastered across WSJ. If you were so well versed with currency warfare, you’d know how sensitive it is to political factors and economic policies.
But I guess objectivity has never been small minded folk’s strong suit.
Wow you must be one of those super smart guys that knows everything, eh? So smart until can forsee that 7 years from now our RM for sure appreciate in value. Based on your intelligence, can you share how many % it will appreciate? Please enlighten small minded folks like me.
You think that all that you mentioned only impacted Malaysia? RM was one of the worst performing currencies among other Asian denomination. You think only Malaysia produce oil is it?
Oh yeah, it’s always other people’s fault. Our gov is the best, right? When Ringgit appreciates then we have to puji, when it drops it’s because of other factors.
Then why ur pipu meyalak when RM drop is salahan gov but when RM now below 4, they turn around and said its other factors? Isnt that hypocrisy tahap topkek?
Level ni je la korang komen. Letak nama pelik2 pas tu maki gov. Kesian…
Ya gov pandai…jom sokang pak belan depan.
Gov mau jadikan orang pandai, tapi orang je yg mau kekal jadi bodo. Nak buat macam mana?
Jadi bodo?? But according to menteri, Improvement in overall SPM results. So mane betui nie or them fakenews
Booksmarts ≠ Streetsmarts
Should have award to local contractor which are more reliable. The rm55bill will giv to the whole nation creating ten thousand job oputinities to local. Instead u give ten thousand job to china.
Locals alredi busy with MRT2, LRT3, double tracking, Pan Borneo, planning for MRT3, NSE widening, and some say a certain tunnel but dunno what happen to that. Gip them a break, no more capital for ECRL. So need to get outside help lor.
Dulu kata bw investment from China, bw duit masuk. Now says loan? Must pay back? With interest? Loan can be classified as investment?
Can. Loan to make it possible for Port Klang to surpass SG. Taking over their role as commerce hub. I wud call that an investment, no?
Where la you get all this so called data and assumptions. 55B return investment how much is that? East coast 1.5 percent increase in GDP. You know how small east coast econ is or not?
Sri Lanka can’t even pay back the loan and exchanged a 99 year lease to lands. You think China lend because it knows you can pay back?
Such small minded thinking. If MY can wrestle the commerce hub mantle from SG, do u think economy will only go up a measly 1.5% GDP? If transporters can ship goods cheaper & faster & safer via Port Klang instead of SG, do u think they wun change?
How much cost and mark up which china agrees to help pay 1mdb debt?
Najib bkn lagi Perdana Menteri skrg…jd knp guna title tu lg
Caretaker PM still considered PM lah.
1. Aku cakap punya.
2. The game of tender/sebutharga.
Just sharing my two cents worth. Nothing to with politics but judging from an economic point of view.
No doubt one belt one road inititiaves are attracting much investment. This programme by China is about linking from the east to the west and even to the south. Many countries are part of this monumental project and considering Malaysia has such strategic location, we shouldn’t missed out too. We should not think about a KL lite get to enjoy buying a salted fish from kelantan alone. We should be thinking about the mass development which can benefit the ppl of the east coast and the area surrounding it. Afterall, when the catalyst is so big and widespread it has a positive impact on the whole country. When the belt and road initiatives are completed with an estimated 26 trillion dollars, it may benefit initially China by sending goods to else where in the world but the long term positive impact are truly immense.
Hopefully history will repeat itself again.. much like those days when Malacca enjoyed the strategic position of the sea trade, our rail link on the west coast has benefit alot of small towns during the mining era and much later the north South expressway during our time now. Many countries are looking at the belt and road project with great enthusiasm but unfortunately we Malaysians are so clouded by political issues, we simply thinks nothing is beneficial to us anymore when any initiatives are taken.
The project may not benefit our lifetime but it has a long term positive impact in the future if not the far future. Of course it comes with a cost. Much like everything else.. even opening a shop to do business, we need to borrow from the banks. Without a loan, some considered a burden, some see it as investment, we might as well sit at home and miss out the opportunities for the world at large.
One country especially, dun share that enthusiasm- SG. And guess who shares this same sentiments? Those who adores it.
as a logistician myself, i believe the country would continue to suffer in serving the loan and the yearly operational deficit. The ECRL would not make money even long term. Let me explain :
1) The East Coast industry would not be able to provide enough volume for any rail services to make money. Even with the volume of West Coast (Kedah – Johor + landbridge), KTMB rail service is unable to make money due to many reasons:
a) Road Transport/Haulage is the best choice in term of cost/service timing. Majority of manufacturing plants located within 20-30 km from Major Ports. Why should they use rail services? Movement of container – shipper/consignee – depot/port usually takes apx 24 (local)/48 hours(oustation) in total unlike rail services which requires triple handling. Client would absolutely choose the nearest port to them. We do have good network of highway/road. For local sales shipper will use normal trucks. So? how ECRL going to get the volume? Classic failure of rail services – KPC KKRS (Kertih)
b. The fact is majority of rail services users are cement factories which have depots for local distribution. This alone would not make money.
2. There is a simple formula which normally dictates the viability of rail services – exceed 1000km. Peninsular Malaysia is well connected and usually shipper (manufacturer) are located apx 1km – 400km from the nearest port. So? how ECRL justified?
3. ‘Connection’ to port klang – ECRL is build with standard gauge 1.435 M (if not mistaken) but the whole West Coast and ASEAN line was built with 1 meter gauge (inherent from UK) So, all equipments between these two different gauges in not compatible – so how the ECRL train (which is wider) would get into PTP/Port Klang/Penang Port?
4. Losses to the Msian
The modus operandi of CHINA company is usually as follow – they provide the loan/money with condition that all outsourcing must be given to their companies. In this case it is proven that majority of companies engaged are theirs/workers are theirs and we Malaysian does benefited less. perhaps the rice cooker they want to import from CN (within the duty exemption list of course)
In long run , the government would continue to service the loan, and subsidize the ops. Just like KTMB
PM najib??? Najib WAS a PM … Pls remember that….shame on you,Najib…!!!
Why starting point is gombak, not main train station or sentral or TBS……