KULAI, Sept 18 (Bernama) — The ringgit’s recent depreciation against the US dollar is not expected to increase the costs of several large-scale projects under the Transport Ministry.
Transport Minister Datuk Seri Dr Wee Ka Siong said the values of these projects have been fixed based on earlier agreements, so there is no reason for their implementation to be delayed.
“All the ongoing projects under the ministry, for example, the East Coast Rail Link (ECRL) will go ahead because the price has been fixed and more than 30 per cent of the work completed.
“So any drop in currency value will not affect the overall contract; the project will continue according to schedule. A total of 1,076 project sites are in operation concurrently under the ECRL project,” he told reporters after officiating the 44th Johor MCA annual convention here today.
He said other projects, including the Mass Rapid Transit (MRT) 2, MRT 3, the Gemas-JB Sentral Electrified Double-Tracking Project and the Rapid Transit System (RTS) to Singapore will continue as scheduled.
The Ayer Hitam Member of Parliament said this when asked whether the ministry will review the costs of large-scale projects or consider postponing them following the depreciation of the ringgit.
The ringgit hit a new low of 4.5340/5365 against the US dollar on Thursday.
Last Tuesday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz reportedly said that Malaysia is not experiencing an economic crisis despite the ringgit’s depreciation vis-a-vis the US dollar.
As for Budget 2023, Wee said his ministry has submitted its “wish list” to the Finance Ministry.
He said all ministries want a bigger allocation for next year, but this will depend on the country’s current financial capabilities.
“Not only the Transport Ministry, but other ministries have also submitted a list of their wants and needs but we have to look at the current reality, and decisions will be made based on priorities,” said Wee.
Source: BERNAMA News Agency