An oil pipeline in Pangerang in Malaysia's southern state of Johor (Source: Reuters)
Kuala Lumpur (VNA) – Malaysia has cancelled three China-backedpipe projects, after they were suspended in July.
Malaysian Finance Minister Lim Guan Eng said that the cancelledprojects were two oil and gas pipelines that cost more than 1 billion USD each,and a 795 million USD pipeline linking Malacca state to a Petronas refinery andpetrochemical plant in Johor state, the Financial Times reported.
Lim added that he had sent a letter to relevant parties inBeijing to terminate the schemes, without disclosing the cancellation feesMalaysia would incur for ending the pipeline contracts.
On August 21, Malaysian Prime Minister Mahathir Mohamad saidthat the three other Chinese-funded projects would be cancelled until Malaysiacan afford them.
They are the 20 billion USD East Coast Rail Link (ECRL)project and two natural gas pipeline projects worth 2.3 billion USD in Sabahand Kedah States.
Mahathir explained that if Malaysia continues implementingthese projects, it will need to borrow a huge amount of money that the countrycould not afford.
These projects are not necessary for Malaysia now as thecountry has to work hard to fix domestic financial deficit, he said.
At present, the Malaysian Government is exerting everyeffort to reduce the national debt, which has climbed to 250 billion USD, headded.-VNA
Former Malaysian Prime Minister Najib Razak has denied any wrongdoing over the two gas pipeline projects worth 9.4 billion ringgit (2.36 billion USD) with China.
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An oil pipeline in Pangerang in Malaysia's southern state of Johor (Source: Reuters) 
