PETALING JAYA (BERNAMA) - Studies are still being made on whether to defer the China-backed multi-billion ringgit East Coast Rail Link (ECRL) project or deal with it in some other way, said Prime Minister Dr Mahathir Mohamad on Friday (Aug 24).

"At the moment they are studying whether to defer or to give it to another (party).

"But we have to also negotiate with them (China), if they agree, (then) we can do it," he said.

The Prime Minister was queried on news reports quoting him as saying during a recent visit to China that the government had decided to cancel the ECRL project for now.

"Or we would find some other way of doing it without costing so much money," he told reporters after attending the inaugural town hall session with about 150 Parti Pribumi Bersatu Malaysia (Pribumi) division chiefs from all over the country. Dr Mahathir is the chairman of the party.

ECRL, the RM81 billion (S$27 billion) project spanning 688 km linking Port Klang and Kota Bharu, was launched last year and slated for completion in 2024.

Another China-backed project, the RM4 billion Trans-Sabah Gas Pipeline (TSGP) to build a 662km gas pipeline from Kimanis to Sandakan and Tawau has been suspended since July.

Queried on whether he had sought a loan from China during his Aug 17-21 official visit to the country, Dr Mahathir replied: "No, no... we have borrowed enough from China".

He was also asked about some reports alleging that Malaysia might not get the yen loan that was sought during his visit to Japan in June.

"Who said that we're not getting the yen loan? I mean you just don't go to the prime minister and say 'please give me a yen loan' and then he writes a cheque for me.

"It has to be done properly. Now our officers are working on the yen loan," he said.