Malaysia may revive at least part of a M$14.5bn ($3.8bn) railway modernisation project, the nation's biggest infrastructure contract, after it was delayed in 2003 to reduce the government's large budget deficit.

The decision to freeze the rail programme by Abdullah Badawi soon after he became prime minister was seen as a sign his administration would stop spending on expensive infrastructure projects favoured by Mohamad Mahathir, his predecessor.