BEIJING: Malaysia has managed to reduce the costs for the East Coast Rail Link (ECRL) project by a whopping RM21.5bil, says Tun Daim Zainuddin.

This comes after Malaysia Rail Link Sdn Bhd and China Communications Construction Company Ltd signed a supplementary agreement that will pave the way for the resumption of the project.

Daim said the new price has been set at RM44bil, a 32.8% reduction from the previous RM66bil price tag.

"The new link is 648km, 40km shorter," he told the Malaysian media here on Friday (April 12).

The Special Envoy to the Prime Minister, who was also finance minister from 1984 to 1991, added that the cost was now RM68mil per km, instead of the previous RM98mil per km.

He did not reveal more details, saying that Prime Minister Tun Dr Mahathir Mohamad would give a press conference on the issue next Monday (April 15).

According to earlier reports, Phase 1 of the 688km rail line will be from Klang Valley to Kuantan, while Phase 2 will cover Kuantan to Kuala Terengganu.

The project's Phase 3 will see the rail line connecting Kuala Terengganu to Kota Baru and Tumpat.