Dr M: China Communications to refund part of ECRL RM3.1b advance payment

Dr M: China Communications to refund part of ECRL RM3.1b advance payment

Chester Tay
16/04/19, 07:14 am

PUTRAJAYA (April 15): Prime Minister Tun Dr Mahathir Mohamad said today China Communications Construction Co will refund to the Malaysian government within a month RM1 billion, which forms a portion of the RM3.1 billion ($1 billion) advance payment for phase 2 of the proposed East Coast Rail Link (ECRL) project.

The refund follows Malaysia Rail Link Sdn Bhd and China Communications Construction's recent ECRL supplementary agreement, under which the 640km project will proceed at a lower cost of RM44 billion compared with its original cost of RM65.5 billion.

"China Communications Construction has agreed to refund part of the RM3.1 billion advance payment paid for phase 2, double tracking and the northern extension under the original contract.

"RM500 million will be refunded within a week from Apr 12, 2019 and a further RM500 million within a month from Apr 12, 2019, or a total of RM1 billion.

"The balance will be settled within three months after deductions for verified claims due to abortive works, suspension and cancellation of the northern extension," Dr Mahathir said at a press conference here today.

Dr Mahathir also said the newly-negotiated supplementary agreement for the ECRL aims to increase local participation of the project to 40% in respect of civil works from 30% previously.

Work on the ECRL has been suspended since July 2018. Reuters reported then that China Communications Construction confirmed that it suspended all work on the project as Malaysia sought to renegotiate the terms of the deal with China.

It was reported that China Communications Construction said on July 5, 2018 it halted all work at the request of project owner Malaysia Rail Link.


US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....