SEMPORNA: Sabah has no objection to the federal government's decision to cancel the RM4bil Trans Sabah Gas Pipeline (TGSP) project, said Head Minister Datuk Seri Mohd Shafie Apdal.
"We agree with the federal government's decision, which we have no objection to, because we are aware of the country's financial burden as a result of debts of 1MDB and other projects of the previous government.
"Maybe we can reconsider the project in the future," he told the reporters here on Wednesday (August 22).
He responded to the announcement by Prime Minister Tun Dr Mahathir Mohamad during his visit to China to cancel the multi-billion East Coast Rail Link (ECRL) and Trans-Sabah Gas Pipeline (TSGP) projects for now.
Dr. Mahathir had said that Chinese President Xi Jinping and Prime Minister Li Keqiang understood the concerns of Malaysia about the financial costs of the two projects supported by the Chinese government.
Dr. Mahathir said the projects involved huge sums of money and Malaysia did not need them at the moment, especially as the country struggled with a ring of a trillion ringgit.
TSGP includes building a 662 km long gas pipeline from Kimanis to Sandakan and Tawau costs about RM4.06bil. The project was suspended in July.
Earlier this year, Minister of Finance Lim Guan Eng said that payments amounting to 87.7% of the project costs had already been paid, although the pipeline projects had only been completed for about 13%.