BEIJING (Aug 21): Prime Minister Tun Dr Mahathir Mohamad said today Malaysia's proposed East Coast Rail Link (ECRL) and two pipeline projects will be cancelled due to the government's fiscal position.
Dr Mahathir said during a press conference with the Malaysian media here that the Chinese government understands the fiscal situation in Malaysia. "They know…they understand us better now," he said.
However, there will be compensation on the cancellation of these projects. "This is due to the stupidity of the previous government," Dr Mahathir commented.
Dr Mahathir said the compensation amount will be negotiated by officials from Malaysia and China later.
Najib had not responded to Dr Mahathir's remarks at the time of writing. theedgemarkets.com could not immediately reach Najib for comment.