Prime Minister Dr Mahathir Mohamad said he believes his close adviser Daim Zainuddin is going to China to talk to the relevant authorities about “some contracts”.

“I think he wants to talk to the Chinese about some contracts, that is my guess.

“He is free to do what he likes,” Mahathir said in a press conference at Yayasan Perdana in Putrajaya today.

He said Daim, who is a member of the Council of Eminent Persons, can advise him on whatever he wants but this does not mean he will accept them all.

“Whatever advice he can give, he can give to me and I can reject his advice,” he said.

It was reported earlier today that Daim is going to China later this month to renegotiate the terms and costs of the East Coast Rail Link (ECRL) and the two projects under the Suria Strategic Energy Resources Sdn Bhd (SSER).

Mahathir also confirmed that he would be visiting China himself in August. 

He had wanted to go earlier, he added, but China President Xi Jinping was not available. 

“I want to go to China as early as possible but the president of China is not available. 

“I wanted to go in July but I’ll go in August,” he said. 

There are several issues to bring up during his trip to China, such as the “unfairness” of the terms of the contract for the ECRL and SSER projects, he said. 

Another issue, he added, would be the loan taken out by the Malaysian government for these projects, which is "much higher than normal."

Previously, Finance Minister Lim Guan Eng had announced that his ministry has issued a notice to suspend all operations of the ECRL and SSER projects with immediate effect.

Lim is also reportedly planning a trip to China later in July.