The East Coast Rail Link's (ECRL) main contractor, China Communications Construction Ltd (CCCC), has reportedly been told by the project owner to suspend all work effective immediately.

This will include all activities under the contract' s engineering, procurement, construction and commissioning areas.

The Edge Markets business portal said that it had sighted a letter dated July 3 from ECRL project owner Malaysia Rail Link Sdn Bhd (MRL) to CCCC which cited grounds of national interest as one of the reasons for the suspension.

The letter, signed by MRL CEO Darwis Abdul Razak, stated that all work done to date was to be protected “against any deterioration, loss and damage” and that no equipment, material or work was to be removed from the site without prior consent.

The Edge Markets said an MRL spokesperson had confirmed the order to suspend the project.

Yesterday, Finance Minister Lim Guan Eng had announced that the actual cost of the ECRL was RM81 billion and the sum would have to be “reduced significantly” for the project to be financially viable.

This is in contrast to the RM55 billion price tag stated by the BN government previously.

The 688km rail link, if built, will connect Port Klang in Selangor and Pengkalan Kubor in Kelantan and is to be constructed in two phases.