Malaysia to delay projects amid rising costs: PM - AFP

Malaysian Prime Minister Abdullah Ahmad Badawi on Tuesday said infrastructure projects under its multi-billion-dollar five-year development plan may be delayed due to escalating costs.

Abdullah, who is also finance minister, said high on the casualty list was the construction of a vital second bridge linking the northern island of Penang to peninsular Malaysia.

"Several matters have delayed its construction. Firstly in getting the land for building the bridge," he was quoted as saying by Bernama news agency. "Secondly, there is a need to ensure that the given design is the most suitable and also the issue of (rising) cost."

Abdullah also said that several other projects under the 200 billion ringgit (65 billion dollars) development plan from 2006 to 2010 would be reviewed.

Lim Guan Eng, chief minister of opposition-led Penang, said he was "shocked" by the premier's announcement.

"Two weeks ago when I met the prime minister, he assured me that the second Penang bridge will continue," said Lim, who is also secretary-general of the Chinese-dominated Democratic Action Party.

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