Malaysia cancels $20 billion projects with China

Kuala Lumpur has not decided how much to pay the Chinese company for the cancellation of the project.

Kuala Lumpur will cancel a $ 20 billion project to build a railway line with China Communications Construction Co.

Malaysia’s economy minister said on Saturday.

Ali said the cost of the project was too high at the time when he confirmed that Malaysia welcomes all forms of investment from China on a case-by-case basis.

“The Council of Ministers has taken this decision because the cost of extending the line is huge and we do not have the financial capacity.”

He said the government had not yet decided how much to pay the Chinese company for the cancellation of the project.

He added that the benefits of the project are up to 120 million dollars annually.

“We can not afford it, so we must end this project without affecting our good relations with China,”

he said.

Malaysian Prime Minister Mahathir Mohammad said last August that the railway project would be canceled for the time being, but the government later said it was negotiating with the Chinese company about the future of the railway.

Another project supported by China, a natural gas pipeline in Sabah (Malaysia), was also announced in August.

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