KUALA LUMPUR (July 4): China Communications Construction (ECRL) Sdn Bhd, a unit of China Communications Construction Ltd (CCCC), has today confirmed it received a notice to suspend all work on the East Coast Rail Link (ECRL) from project owner, Malaysia Rail Link Sdn Bhd (MRL).

In a statement, China Communications Construction ECRL said it regretted that the suspension "comes at this junction, as substantial work has been progressing well".

The ECRL is an important project of Malaysia which will benefit the people and economic development along the route, it said, adding CCCC was entrusted to conduct the project as its engineering, procurement, construction and commissioning (EPCC) contractor.

"The contract has been signed by CCCC and MRL via legal processes. We hope MRL will honour and respect the contract signed," the company said.

"We respect and comply with Malaysian laws. Under the situation, we have no choice but to adhere to the suspension instruction," it added.

While the duration of the suspension has not been specified, the company also expressed its concern about incurring additional cost, losses and damages arising from the suspension.

"We are upset and concerned about the livelihood of our 2,250 local staff, as well as several hundred sub-contractors, suppliers and consultancy firms," said CCCC.

"We hope that both sides will be able to find a win-win solution through sincere negotiation with good will. We also hope that the suspension will be lifted as soon as possible for the benefit of all parties," CCCC added.

Earlier today, theedgemarkets.com reported that MRL had instructed CCCC to suspend all EPCC works of the ECRL project on grounds of national interest in a letter dated July 3 that the news portal sighted.