Treasury Secretary-General, Irwan Serigar Abdullah, said if the financing for the project could be finalised by year-end, the new double-track rail project connecting Port Klang, Selangor to Tumpat, Kelantan could take off by next year.
He said the spin-offs of the project would be lower transportation costs between the west and east coasts of Peninsular Malaysia as well as the lower prices of goods besides a marked reduction in travelling time.
“It will also help create more jobs and business opportunities for Malaysians, especially rural folks,” he told Malaysian media when met after welcoming Prime Minister Najib Razak, who arrived here today for a six-day official visit to China.
Irwan said although the agreement had not been finalised yet, the financing offered by China was competitive with a low rate compared to international markets, with a long repayment period of 20 years.
He said the project was crucial to Malaysia and could not be delayed since it would not only spur the country’s transportation industry development, but would help speed-up growth of small towns along the way.
The project would also assist in the transfer of technology in railway industry, he said.
“The future development of railways is the in thing, and Malaysia needs to make the move in getting the technology and the new system in railway construction,” he said
Irwan also said the project would be built in phases, with the first being from Port Klang – Gombak – Dungun, Teregganu and second phase from Dungun to Tumpat.
When asked which phase would take off first, he said, it would depend on the one that was the easiest to build.
He also said land acquisition would not be a problem for the ECRL project.
Najib, in tabling the 2017 Budget, said the project would be launched in phases and would connect townships such as Port Klang, ITT (Integrated Transport Terminals) of Gombak, Bentong, Mentakab, Kuantan, Kemaman, Kerteh, Kuala Terengganu, Kota Bharu and end in Tumpat.
The construction of the project is expected to start next year and be completed by 2022.
Meanwhile, Irwan said Najib’s meeting with Jack Ma, Founder/Executive Chairman of the Alibaba Group, was reflective of Malaysia’s efforts to learn from China about the digital economy.