The Perikatan Nasional (PN) federal government is not going to provide a guarantee for a RM2.04 billion loan application by the Penang state government for its light rail transit (LRT) project.

According to a report by The Edge Markets, Putrajaya has decided not to grant a government guarantee for the loan, which is to partly finance the RM9.5 billion project.

It quoted Finance Minister Tengku Zafrul Abdul Aziz (above), who said that the decision was...