What impact does MRT2 cancellation have on 20,000 workers?

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MRT2 Contract Cancellation Sparks Job Loss Fears for 20,000 Workers

The cancellation of MMC-Gamuda's underground contract for the MRT2 project has raised concerns that approximately 20,000 workers may face job losses. This development follows the Finance Ministry's announcement of the contract termination due to a failure to agree on cost reductions.
Worker Anxiety Amidst Contract Termination

Following the Finance Minister's announcement on Sunday, which stated the cancellation of MMC-Gamuda's contract would save RM5.2 billion from the project's RM16.71 billion total cost, there has been significant anxiety among the workforce. The firm has acknowledged these reactions, describing them as "sincere and directly from their hearts" and expressing empathy for their situation.
Government Review of Contract Cancellation

The Prime Minister, Tun Dr Mahathir Mohamad, has since stated that the government will reconsider the termination of the MRT2 underground contract. This announcement has offered a glimmer of hope to those concerned about potential job losses. MMC-Gamuda has expressed its commitment to further discussions and cooperation with the Finance Ministry to achieve an agreeable cost reduction.
Open Book Approach Proposed for Reassessment

In an effort to facilitate a resolution, MMC-Gamuda has proposed adopting an "open book approach." This would involve the appointment of an international engineering consulting firm with relevant expertise to re-examine where cost savings can be derived from the tunnelling works. The firm has requested that its Intellectual Property rights and commercially sensitive information be respected during this review process.
Future of Underground Works and Worker Employment

While the underground works are slated to be retendered, with MMC-Gamuda eligible to participate, the ultimate impact on the 20,000 workers remains uncertain pending the outcome of the government's review and any subsequent renegotiations. The firm has urged its staff, subcontractors, and suppliers to remain calm and trust in the Prime Minister's review process.

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What impact does MRT2 cancellation have on 20,000 workers?

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