Malaysia awards major rail project to China

http://ceconomy.blogspot.com/

Kuala Lumpur - Malaysia announced Wednesday it would award a 2.3-billion-dollar rail project to China, as leaders of both nations pledged to increase bilateral trade.

Government officials earlier this year estimated the tracks, which are to connect the southern city of Johor Baru with Gemas in the neighbouring state of Negeri Sembilan, would cover 250 kilometres and cost more than 8 billion ringgit (2.3 billion dollars).

Apart from the rail project, Malaysia also committed to grant Chinese companies contracts to construct one of the country's biggest dams and an aluminium smelting plant, Prime Minister Najib Razak said after a meeting with Chinese President Hu Jintao in the administrative capital of Putrajaya.

'Both nations agree that there is enormous hope for our bilateral relations and we are agreed that we should work together to increase bilateral trade and investment,' Najib said.

China became Malaysia's biggest trading partner this year, surpassing Singapore, the United States and Japan. ' ... We hope that trade and investment will increase with China,' Najib said.

From January to September, bilateral trade reached 89 billion ringgit (25.5 billion dollars), accounting for nearly 13 per cent of Malaysia's total trade during that period.

Hu, who arrived in Kuala Lumpur Tuesday with a 140-member delegation, is the first Chinese leader to visit Malaysia in 15 years.

'China and Malaysia's relationship is embracing a new era of all-around development. We will work with Malaysia to usher in an even brighter future,' Hu said.

Both countries also signed a memorandum of understanding to deepen cooperation between their banking regulatory authorities.

Hu is scheduled to leave for Singapore later Wednesday, where he is due to attend the Asia-Pacific Economic Cooperation summit.

Looks like international relations are on the right track.

Why awards major rail project to China? Why not to the Malaysian construction company?

A Malaysian based company Giant Group Limited (GGL) was awarded US$5 billion contract to construct a 220 KM of electrified railway track in Savannakhet, Laos. The Savannakhet line will link to Mukdahan, Thailand in the west and to Lao Bao, Vietnam in the east. The structural construction work is appointed to Beijing-based Asean Economic & Trade Centre (AETC), which is valued at US$3 billion. The remaining US$2 billion has been awarded to TMK for the mechanical, electrical and systems component of the project.


http://www.asiafinest.com/forum/index.php?...25&t=217531

It's simple, because China can do it cheaper in this project.
Whatelse do you think it can be? Buddhalove.

How cheap? show me the number, only your lips are not counted!

not long after taking over from Dr Mahathir Mohamad, new Prime Minister Abdullah Ahmad Badawi announced that the Malaysian government had decided to postpone the project.[14] The government revived the project in 2007 when on March 16, Deputy Prime Minister Mohd Najib Abdul Razak announced that the Cabinet Committee on Public Transport had decided to revive the shelved Northern section double tracking project.[15] On 21 April 2007, Transport Minister Chan Kong Choy confirmed Ircon's participation in the "revived double-tracking project" and that the company will undertake the Seremban-Gemas portion of the Seremban-Johor Baru.
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China has a lot more grease?

"special delivery" : right amount to right personnel