KUALA LUMPUR: Finance Minister Lim Guan Eng is optimistic that a deal can be finalised with China to revive the East Coast Rail Link (ECRL) by April.

He said talks are ongoing with China to reduce the cost of the project and that a final decision can be made by the time Prime Minister Tun Mahathir Mohammed visits the country in April.

According to a Bloomberg report, China is willing to reduce the US$20bil (RM81bil) price tag for the ECRL project, with discussions between the two nations on the project said to be “in the last mile.”

The ECRL was a planned railway link infrastructure project connecting Port Klang on the Straits of Malacca to Pengkalan Kubor in northeast Peninsular Malaysia, connecting the East Coast Economic Region states of Pahang, Terengganu and Kelantan to one another and to Peninsular Malaysia's west coast and Central Region.

When the Pakatan Harapan government came into power last year, it scrutinized mega projects that would be a financial burden to the country.

Separately, Lim said talks are ongoing with China for the proposed issuance of Panda Bonds for Malaysia to help with the country's finances.

“Panda Bonds have been offered by China and we are still in discussions.

“It’s a good sign as it highlights China’s confidence in Malaysia,” he said.

Meanwhile, in his keynote speech, Lim reiterated that Malaysia will resolve its fiscal deficit woes in three years.

According to reports, the government aims to reduce the country’s fiscal deficit from 3.7% in 2018 to less than 2.8% in 2021.

“In three years, we hope to turn Malaysia into a roaring Asian economic tiger,” said Lim.