MMC-Gamuda MRT2 project termination a bad move, says Kan

kan

PORT DICKSON: The government should review its decision to terminate the MMC-Gamuda JV contract to build the underground portion of the MRT Line 2, says independent candidate Kan Chee Yuen (pic).

While he understood that the Finance Ministry’s decision was made due to cost cutting measures, he is concerned on how it is being done.

“I am concerned about the unseen costs, not just the loss of money, but losses in terms of technology, innovation and improvement.

“The approach must be done in a professional way. It should not just be about cost cutting; cost optimisation should also be a factor.

It was reported that the Finance Ministry’s move to terminate MMC-Gamuda KVMRT (T) Sdn Bhd’s contract to build the underground portion of the MRT2 would result in over 20,000 job losses from a supply chain of over 600 Malaysian companies.

Finance Minister Lim Guan Eng had said that all unfinished underground work at MRT2 would be re-tendered via an international open tender process.

Kan said the announcement might affect investor confidence and send the wrong signal to the international business community.

“The foreign investors will say that if you guys keep changing your policies, what will happen to the confidence level?

“That is why our ringgit will continue to depreciate,” he added.

He also said that the announcement had an impact towards local companies operating in Port Dickson.

“Out of the supply chain, I was told that ten of the businesses are from Port Dickson.

“These are businesses and not individuals. We are not sure how many engineers working there are from Port Dickson.

“Imagine the local companies are now losing employment as well as business opportunities from Port Dickson,” he said.



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