The Malaysian government said on Friday that it would allow construction of a controversial Chinese railway to resume after it negotiated a cost reduction, breaking a nearly year-long impasse over one of China’s highest-profile “belt and road” projects.
The announcement will come as a relief to Beijing, which has been on the defensive about transparency issues and cost overruns on projects .
In a statement, the office of Prime Minister Mahathir Mohamad said the projected cost of the East Coast Rail Link along the Malaysian peninsula had would be reduced by about one-third, to RM44bn ($10.66bn) from RM65.5bn. “This reduction will surely benefit Malaysia and lighten the burden on the country’s financial position,” the prime minister’s office said.