Malaysia's East Coast Rail Link (ECRL) stands as a monumental project under China's Belt and Road Initiative (BRI). Designed to connect Port Klang in Selangor on the west coast with Kota Bharu in Kelantan on the east coast, the initiative promises to revolutionize transportation across the region. With an investment of RM50 billion (US$11.2 billion), the ECRL aims to facilitate the movement of goods and passengers along its 665 km railway line, boasting speeds of 80 km/h for freight and 160 km/h for passenger trains.
However, the ambitious project has not been without controversy. Political debates have surrounded the ECRL, particularly concerning its realignment proposed by the previous Pakatan Harapan (PH) government to pass through Negeri Sembilan. Moreover, the influx of foreign workers—who reportedly outnumber local employees—has raised eyebrows. These workers are said to work seven days a week for lower wages than their Malaysian counterparts, who often request more time off and sometimes clash with Chinese supervisors.
"What is known is the presence of workers from China who are working on it (the ECRL)," – Samirul Ariff Othman
The ECRL's construction phase currently employs approximately 23,000 workers. Upon completion, operations and maintenance will transition to a joint venture between Malaysia Rail Link (MRL) and China Communications Construction Company (CCCC), which will own all ECRL assets. The operational workforce will primarily be sourced locally, with a target of 80% domestic employment.
This infrastructure project is anticipated to create an economic multiplier effect by catalyzing investment in less-developed regions. Nonetheless, concerns about its feasibility and profitability persist. Critics have questioned whether the ECRL represents a strategic move by China under the guise of "debt-trap diplomacy."
"The East Coast Rail Link is a collaborative project between two sovereign states, and inherent risks of failure are a part of mega-projects like this," – Peter Chang from Universiti Malaya’s Institute of China Studies
The loan agreement with China's state-owned Export-Import Bank (China EXIM) has been scrutinized for its lack of transparency. If MRL defaults, the Malaysian government will have to assume responsibility using taxpayer funds. The PH government renegotiated the project's cost in 2019, reducing it from RM50.27 billion to RM44 billion in an effort to alleviate financial pressures.
"The public or taxpayers deserve to know the basic information about the loan such as interest rate, payment terms and the period of the loan as well as the government’s plan to mitigate any fiscal risks arising from potential default." – Ong Kian Ming
Despite these challenges, officials remain hopeful about the ECRL's potential impact. They believe it can drive development along strategic areas near the railway line, which could help offset the loan servicing costs and ensure financial sustainability.
"The best that this government can hope for is that the ECRL can spur catalytic development along strategic areas near the train line, some of which can be monetised by the government to pay back some of the loan servicing and to make the running of the line financially sustainable," – Ong Kian Ming
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