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Apr 26, 2008

Federal government threatens to scrap Penang monorail project

malaysiainsider -All pretence was dropped today when the federal government signalled that it would scrap the monorail project and other infrastructure projects in Penang if the state government does not play ball. Also in the frame to be cancelled is the expansion of the Penang airport, the Insider has learnt.

Delivering the government’s hardline message was Second Finance Minister Tan Sri Nor Mohamed Yakcop. This approach could spook foreign investors who have adopted a wait-and-see attitude after Election 2008 put the Barisan Nasional back into control but placed five states in the hands of Pakatan Rakyat.

Investors wondered whether there would be mature cooperation between the Federal government and the five states or whether political posturing would be the order of the day.



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