KUALA TERENGGANU: Terengganu can expect to see more significant economic development now that the East Coast Rail Link (ECRL) project is back on track.
Transport Minister Anthony Loke Siew Fook said the project would bring economic spin-offs in the transport and tourism sectors.
But in the near term, he said, the relaunch of the project had given Malaysian companies opportunities to play a more active role than previously.
Loke said the renegotiations had paved the way for better participation in the project by Malaysian building contractors, increasing to 40% from 30% under the previous model.
He was speaking at an official ceremony to relaunch the project at the Terowong Dungun site in Rimba Bandar Bukit Bauk here today.
Following a revision, the cost of the 648km rail link has dropped to RM44 billion from RM65.5 billion. It is scheduled for completion in December 2026.
The ECRL, which will cut through five states, will link Port Klang on the West Coast to Kota Baru on the East Coast.
Chinese ambassador to Malaysia Bai Tian, who was also at the event, said the project would contribute to Malaysia’s economic growth.
He said: “It is a game changer that will revitalise the East Coast economy, thus strengthening ties between Malaysia and China.”