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April 15, 2019

Malaysia and China sign deal to resume East Coast Rail Link

Malaysia and China have signed a revised agreement to resume the construction of the suspended East Coast Rail Link (ECRL).

Malaysia and China have signed a revised agreement to resume construction of the suspended East Coast Rail Link (ECRL).

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The new agreement, which reduces the scope and cost of the original project, was signed following months of negotiations between the two countries.

According to a statement from the Malaysian Prime Minister’s office, the ECRL project will now be built with an investment of MYR44bn ($10.7bn), nearly two-thirds of the original cost.

“This reduction will surely benefit Malaysia and lighten the burden on the country’s financial position,” the statement added.

Last year, Malaysia halted construction of the rail link owing to its high costs and said it would re-negotiate with the Chinese authorities to reduce the scale of the project.

“The ECRL project will now be built with an investment of MYR44bn ($10.7bn), nearly two-thirds of the original cost.”

Malaysian official Daim Zainuddin, who negotiated with China, said that the original 688km project will be reduced by 40km to 648km.

Additionally, the cost of building each kilometre of the line will be reduced significantly from MYR98m ($23.82m) to MYR68m ($16.53m).

Further revised details on financing and interest payments will be released this week.

As part of China’s Belt and Road initiative, the East Coast Rail Link project will connect Port Klang on the Straits of Malacca to Pengkalan Kubor in north-east peninsular Malaysia.

In January, Malaysia terminated the original contractor agreement with China Communications Construction Company.

The current Malaysian Government has been reviewing all major national infrastructure projects, which may increase the national debt.

Last year, it suspended the construction of the high-speed rail project between its capital Kuala Lumpur and Singapore.

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
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  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
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Enter your details here to receive your free Report.

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