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Renegotiate the North-South double
track railway project with India and China in the interest of
maintaining good relations with the two countries
Statement
by Dr Chen Man Hin
(Seremban, Sunday):
The construction of the N-S double track railway project was initiated on a
government to government (G2G) basis, between Malaysia and China/India.
CIRCON was the Indian contractor and CREC the contractor for China.
Negotiations were conducted and had been going on for some months, and the
last tender offer was 20 billion ringgits.
Then out the blue, it was announced that the double railway contract was
awarded to MMC-Gamuda joint venture (JV) with offered RM14.5 billion
Tun DR Mahathir explained that JV was awarded the contract because it was
the lowest tender. The difference in value between the two tenders was RM5.5
billion. For these few billions, the government is putting at risk the good
relationship between Malaysia and China-India.
The sudden change of the G2G (government to government ) arrangement with
the award to a third party will create misunderstanding and put a strain on
international relations. Already, the press in India are up at arms over the
issue.
The government cannot disregard the fact that both China and India are the
largest buyers of palm oil from Malaysia, and this is no small factor in the
cause for the high palm oil prices which is helping the economy to recover
faster and boosting the income of rural folks.
The government must also keep in mind that China and India are fast becoming
Asia s economic giants, with China s economy slated to overtake Japan in 5
years time. Good relationship with them will open their markets to Malaysia
s exporting industries. Not to mention other benefits like tourism.
Favouring MMC-Gamuda a local consortium might look patriotic, but is it? It
would only benefit a few individuals. Weigh this against the obvious
advantages of a booming trade with China/Inda to the national economy and
the rural masses. The government must revert back to the G2G arrangement.
The question of railway construction expertise is another factor. We know
India and China have considerable experience in this field, because they
have built and maintained large national railway systems in their countries.
Has MMC-Gamuda that kind of expertise? The N-S double track railway is an
important segment of the trans-Asean network, and it is vital that the
construction is done by the experts, and not by a hastily gathered
consortium without any engineeering experience on railways.
Lastly, it is vital at this stage for Malaysia to send the message that it
is keen to maintain good relations with all countries, and do business with
them. Relationship with the West is already strained. The government cannot
afford to do anything untoward which will undermine relationship with China
and India especially when they soon will be the top economies in Asia
The DAP calls upon the new prime minister, Datuk Abdullah Badawi to revert
back to the G2G arrangement and renegotiate to reach a settlement.
(2/11/2003)
* Dr Chen Man Hin, DAP life advisor
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http://dapmalaysia.org