Politics · Malaysia Bureau
Malaysia cuts pipeline project losses to RM3 billion through Cexim agreement
Prime Minister Anwar Ibrahim says a deal with China's state-owned export credit bank has significantly reduced financial exposure from the stalled infrastructure project. The settlement includes compensation payments to contractors for preliminary works and associated costs.
LSN Malaysia ·
Malaysia has negotiated down losses from a major pipeline project to RM3 billion through an agreement involving China's Export-Import Bank, according to Prime Minister Anwar Ibrahim. The Cexim deal represents a substantial reduction in the government's financial liability from the suspended infrastructure initiative. Anwar said the settlement comprises compensation to contractors who undertook preliminary works on the project, along with various related expenditures that accumulated during the development phase. The agreement aims to provide clarity and closure on the long-running matter, which had previously weighed on the country's fiscal position. Details of the final settlement structure and payment timeline were not immediately disclosed by the Prime Minister's office. The resolution underscores ongoing negotiations between Kuala Lumpur and Beijing over infrastructure projects initiated under previous Malaysian administrations.