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Malaysia Contractors Slide as Mahathir Deepens Spending Cuts

  • Gamuda falls by a record, MMC drops to a nine-year low
  • Mahathir has canceled or deferred mega-projects to cut costs
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Malaysian contractors are plunging as the government intensified its efforts to rein in spending by reducing the cost of an almost $14-billion mass-rapid transit project.

Shares of Gamuda Bhd. slid by a record and MMC Corp. fell to the lowest in nine years, after the Finance Ministry rejected an offer from the MMC-Gamuda consortium to build an underground portion of the MRT2 project. The government also shaved 5.22 billion ringgit ($1.3 billion) from the above-ground portion that will be constructed by the same group, the ministry said in an emailed statement Sunday.