KUALA LUMPUR (Oct 17): Finance Minister Lim Guan Eng said today that he will bring the matter of the termination of MMC Gamuda KVMRT (T) Sdn Bhd’s contract to build the underground portion of the Mass Rapid Transit Line 2 (MRT2) for further deliberation in the next cabinet meeting.

That's because the cabinet was the one to pull the plug on MMC Gamuda's underground work contract of the MRT2, he added.

“Let’s wait for the next cabinet meeting because I was not in the previous cabinet meeting, as I was in Bali last week attending the Asean Ministers Conference. So, let me get back to you after the next cabinet meeting, to update on the present situation," he told reporters at Parliament lobby today.

"On this matter, bear in mind it was a cabinet's decision. So, if there are any changes, it has to be decided by the cabinet,” Guan Eng added.

On Oct 7, Guan Eng had announced that the federal government will be retendering all unfinished underground works of the MRT2 project, also known as the Sungai Buloh-Serdang-Putrajaya (SSP) line, through an international open tender process.

He had also announced the termination of the underground work contract after the government and MMC Gamuda failed to reach an agreement relating to a reduction in the construction cost.

However, MMC-Gamuda had lamented that the joint venture (JV), which is equally owned by Gamuda Bhd and MMC Corp Bhd, was not being given a fair chance to work out the cost reduction for the underground works, as the Ministry of Finance did not reveal the target it wanted to achieve.

The ministry had also warned it would result in immediate job losses of over 20,000 personnel involved in the underground works, from a supply chain of over 600 Malaysian companies.

Subsequently, Prime Minister Tun Dr Mahathir Mohamad had said the government will review its decision to open the international tender process for the MRT2 underground works.

On Oct 11, The Edge Financial Daily had also reported saying four ministers led by Guan Eng will be involved in the renegotiation. They are Economic Affairs Minister Datuk Seri Mohamed Azmin Ali, Transport Minister Anthony Loke and Works Minister Baru Bian.

Gamuda shares closed down one sen or 0.41% at RM2.42 today, with 12.32 million shares done, bringing a market capitalisation of RM6 billion. However, shares of MMC settled at RM1.14, up one sen or 0.89%, with 474,400 shares traded, valuing it at RM3.47 billion.