Malaysia to Cancel $20 Billion China-Backed Rail Project

A Malaysia mass transit train against the backdrop of Malaysia's landmark Petronas Twin Towers, in Kuala Lumpur on December 15, 2016. MOHD RASFAN/AFP/Getty Images

KUALA LUMPUR—Malaysia’s economics minister said on Jan. 26 the country will cancel its $20 billion East Coast Rail Link (ECRL) project with contractor China Communications Construction Co. (CCCC).

Mohamed Azmin Ali said at a media event that the project’s cost was too great, while also giving an assurance that Malaysia would welcome investment from China on a case by case basis.