Statement by China Communications Construction ECRL Sdn Bhd

Statement by China Communications Construction ECRL Sdn Bhd:

We acknowledge that we have received a notice to suspend all work on the East Coast Rail Link (ECRL) from Malaysia Rail Link Sdn Bhd (MRL) and regret that the suspension comes at this junction, as substantial work has been progressing well.

The Malaysia East Coast Rail Link is an important project of Malaysia which will benefit the people and economic development along the route. China Communications Construction Company (CCCC) was entrusted to conduct the project as Engineering Procurement Construction Commissioning (EPCC) contractor to assist in infrastructure construction in Malaysia. The contract has been signed by CCCC and MRL via legal processes. We hope MRL will honour and respect the contract signed.

We respect and comply with Malaysian laws. Under the situation we have no choice but to adhere to the suspension instruction. While the duration of the suspension has not been specified, we are concerned about incurring additional cost, losses and damages arising from the suspension. We are upset and concerned about the livelihood of our 2,250 local staff, as well as several hundred sub-contractors, suppliers and consultancy firms.

We hope that both sides will be able to find a win-win solution through sincere negotiation with good will. We also hope that the suspension will be lifted as soon as possible for the benefit of all parties.

China Communications Construction (ECRL) Sdn Bhd
4 July 2018

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