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China's Ambitious Rail Plans: Connecting Malaysia's $10 Billion ECRL to Laos and Thailand

China's Ambitious Rail Plans: Connecting Malaysia's $10 Billion ECRL to Laos and Thailand
Credit: Courtesy of China Communications Construction ECRL

On June 19, Prime Minister Anwar Ibrahim and Chinese Premier Li Qiang officiate the groundbreaking ceremony for the Malaysia's East Coast Rail Link (ECRL) Gombak Integrated Terminal Station. This $10 billion project has the potential to support Beijing's Belt and Road Initiative in Southeast Asia.

The 665-kilometer rail line will connect Malaysia's east and west coasts and is scheduled for completion by the end of 2026. In March, the Malaysian government stated that it would consider extending the project to the Thailand and Laos borders, supported by China.

The program, first announced in 2013, has now reached approximately 70% completion, with a target end date of 2028.

Prime Minister Anwar and Premier Li met in Putrajaya on June 18 to celebrate 50 years of diplomatic relations between Malaysia and China. Following their meeting, they signed over a dozen agreements, including a five-year program for cooperation in various fields such as trade, investment, agriculture, manufacturing, infrastructure, and financial services.

During the meeting, China also agreed to allow imports of fresh durian from Malaysia after sanitary requirements are met. Malaysia, one of the largest producers of durian, was previously allowed to send only frozen products to China, with export value reaching 1.19 billion ringgit in 2023.

Malaysia and China have been major trading partners since 2009, with total trade amounting to $98.9 billion in 2023. Anwar emphasized the importance of the relationship with China as a key trading ally and highlighted the need to address South China Sea issues independently.

At the meeting, Anwar and Li also agreed to expedite the free trade agreement between China and ASEAN.

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