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| Tengku Abdullah (left) inspecting a guard of honour at the opening of the state assembly sitting. - Bernama Nod for review of ECRL cost METRO NEWS Wednesday, 25 Jul 2018 by ong han sean KUANTAN: The Regent of Pahang has expressed his approval for the Federal Government’s move to review the cost of the East Coast Rail Link (ECRL) project. Tengku Mahkota Tengku Abdullah Sultan Ahmad Shah welcomed the decision but hoped the railway line would still be built to create more economic growth areas. “The construction of the ECRL will increase connectivity of economic and industrial areas from Kuantan Port to Tumpat in Kelantan and Port Klang in the west coast,” he said at the opening of the state assembly sitting here - for more, go to https://www.thestar.com.my/metro/metro-news/2018/07/25/nod-for-review-of-ecrl-cost-tengku-abdullah-we-welcome-decision-but-hope-railway-line-will-be-built/ Malaysia at BRI-global economic crossroads July 25, 2018 KUALA LUMPUR (July 2018): After all the post 14th General Election (GE14) hoo-haa over China-related mega projects in Malaysia, it is time to face reality or get real. The new Pakatan Harapan (PH) federal government will have to eventually make a decision, whether it likes it or not. Stalling is no solution. China has US$34 billion (RM138 billion) worth of infrastructure projects underway in Malaysia and the most crucial of all is the Belt Road Initiative (BRI)-linked East Coast Rail Link (ECRL) … for more, go to https://ilovemalaysiachinasilkroad.blogspot.com/2018/07/malaysia-at-bri-global-economic.html |
Death knell for Malaysia’s ports and trading?
As Malaysia continues to annoy China with regards to trade and investments, especially on the multi-trillion-dollar Belt Road Initiative (BRI), China had started focusing on bypassing Malaysia.
In fact, as early as last April, before the 14th General Election (GE14), China had started official talks with Thailand on the 200-year dream of the Kra Canal link to complement BRI.
Obviously China is fed up with Malaysia’s flip-flop decisions, and with the cancellation of the East Coast Rail Link (ECRL) as BRI’s rail hub for Southeast Asia, it is likely to bypass Malaysia and focus its BRI on Thailand.
Should the Kra Canal become a reality for BRI, the only port in Malaysia that may still be viable is Penang. That too is questionable.
Malaysia, Indonesia, Singapore and Brunei may all need to switch their trading activities to the Kra Canal.
Many still believe the Kra Canal can never be realised but many projects by China had become reality in the past.
So, Malaysia’s trading and future may be bleak with Thailand becoming the true “Tiger Economy”.
Now, that’s much for the Malaysian federal government to think about fast! No?
Read on for more:
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| Thai Prime Minister Prayut Chan-o-cha, fourth from left, meets with Chinese President Xi Jinping, fourth from right, during a meeting at the Great Hall of the People in Beijing (Dec. 23, 2014). Image Credit: AP Photo/Wang Zhao, Pool |
A 200-year-old dream might finally become a reality under China’s Belt and Road.
By Rhea Menon
April 06, 2018
The establishment of a Kra Canal in Thailand may soon become a reality as part of China’s Belt and Road Initiative (BRI). The canal would permit ships to bypass the Malacca Strait, a crucial maritime chokepoint, amplifying the strategic significance of the project.
Throughout history, there have been multiple attempts by the Thai monarchy and European colonists to capitalize on the commercial and strategic importance of the region by constructing a canal across the narrow isthmus that connects Thailand to the Malay peninsula. In recent times, China’s global vision of a new Maritime Silk Road has renewed the attention on the possibility of developing the Kra Canal. The modern Kra or Thai Canal project would be connected to the various Chinese infrastructure and connectivity projects in the region.
The maritime portion of the BRI is an ambitious connectivity project that aims at linking Southeast Asia to Europe through the Indian Ocean. In the last two decades, the construction of new ports and maritime facilities has contributed to the increasing competition among nations in the Indian Ocean region. As China continues to expand its presence across the maritime domain, the establishment of infrastructure projects, like the Kra Canal, is likely to influence the new emerging security architecture in the Indo-Pacific.
Most recently, the Thai-Chinese Cultural and Economic Association and the European Association for Business and Commerce participated in a conference on the Kra Canal in Bangkok on September 2017 and a follow-up event on February 1, 2018, signaling a greater interest in executing the project.
Historical Significance
The strategic purpose of the canal was initially recognized in the 19th century under King Rama I and King Rama IV as a quick way to send Thai troops to counter Burmese invaders to the north of Thailand. Under King Rama V, the French sent Ferdinand de Lesseps, the engineer credited with building the Suez Canal, to raise the possibility of constructing the Kra Canal again. But, in an effort to appease the British who already had a strong foothold in the Malacca Strait, especially Singapore, the Thai King declined the offer.
After World War II, Thailand was forced to sign Article 7 of the Anglo-Thai treaty of 1946, which prevented them from constructing the canal in an effort to ensure international political stability. It wasn’t widely discussed again until the 1980s, when the potential of the project was highlighted by the American-led Executive Intelligence Review (EIR) and the Fusion Energy Foundation as a major economic advantage to an increasingly industrialized and globalized world. The report included the long-term advantage of the canal to Thailand and its neighbors.
The onset of the Asian Financial Crisis in the late 1990s provided a major setback for the Kra project and it wasn’t until Yingluck Shinawatra’s prime ministerial term that the canal came back to the limelight. Yingluck Shinawatra’s commitment to infrastructure and development projects to boost the country’s economy reinstated the country’s positive approach to the possibility of the Kra Canal.
The Canal as a Part of BRI
The possibility of the Kra Canal becoming a reality has been greatly increased by China’s Maritime Silk Road initiative and the Thai Canal Association (TCA), a group of influential former top brass soldiers advocating for the project. Based on reports, the canal will cost approximately $28 billion and take a decade to complete. China is reportedly willing to supply the financial and technological support to Thailand in hopes that the Thai canal reaches fruition.
The new Thai Canal project comprises two portions. The first portion is seen as a counter to the “Malacca Dilemma.” The canal will link the South China Sea to the Andaman Sea, connecting the Pacific Ocean to the Indian Ocean respectively, drastically diminishing transit time across the busiest maritime shipping route. Chinese companies are extremely interested in speeding up the project as over 80 percent of Chinese oilimports flow pass through the Malacca Strait. The second portion is the establishment of a Special Economic Zone (SEZ). The new zone includes the addition of cities and artificial islands, which will enhance new industries and infrastructure in the region. This would make Thailand into a “logistic hub” and link Thailand to countries from all over the world.
While the Chinese government has refrained from making any official claims, reports state that China and Thailand signed a Memorandum of Understanding (MoU) on the canal project in Guangzhou in 2015. The MoU was signed by the China-Thailand Kra Infrastructure Investment and Development company and Asia Union Group. Apart from the Chinese interests in the region, however, the Thai government is trying to attract other international funding from Japan, South Korea, India, and ASEAN countries.
Challenges
While the construction of the canal is a lucrative idea with significant strategic implications, it is not without challenges. The major concerns associated with the construction of the project are environmental effects and Thai national security. The division of the isthmus has considerable environmental implications on the flora and fauna of the region. Chinese counterparts expect the Kra Canal to be similar to other Chinese megaprojectslike the Three Gorges Dam in China.
A serious concern associated with the construction of the canal is its possible impact on Thai sovereignty and security. The southern portion of the country (south of the proposed canal) has seen an increasing divide between Thai Buddhists and Thailand’s Malay Muslims. The historical animosity between the two groups stems from 1902, when Thailand first annexed the independent state of Patani. In the last few decades, due to the mismanagement of the government, the southern part of the country has seen an increase in insurgency attacks. The construction of the Kra Canal would further exacerbate the volatile region, creating further divisions within the country.
Rhea Menon is a researcher at Carnegie India."
Xi-led China goes for the above, while the Trump-led US goes for this:
Xi looks to the future, Trump looks back at history
https://youtu.be/4Sin00Eje38 (VIDEO: Xi Jinping looks towards 2050, Trump looks back to 1950)
KUALA LUMPUR (Sept 2018): This blog has stressed in many postings that the US has been waging war in the 20th Century through to the 21st Century digital era. It continues to do so because the Donald Trump-led US is unable to think out of the box why it is fast losing its global economic and military influence.
While others, like China and Russia, have moved forward with innovative economics via science and technology, the US, perhaps due to its arrogance, continue to rely on the sale of arms to oil its economy. However, the sale of arms is no more that profitable to the US today as in the 20th Century. That’s because there are alternatives from China, Russia and others … for more, go to https://ilovemalaysiachinasilkroad.blogspot.com/2018/09/xi-looks-to-future-trump-looks-back-at.html
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