Japan Times: China’s infrastructure projects in Malaysia are under threat
Malaysia was once a loyal partner in China’s globe-spanning infrastructure drive but a new government is now pledging to review Beijing-backed projects, threatening key links in the much-vaunted initiative.
Original Article on Japan Times: Under new leader Mahathir, China’s infrastructure projects in Malaysia are under threat
Former Malaysian Prime Minister Najib Razak speaks to the media after being questioned at the Malaysian Anti-Corruption Commission office in Putrajaya on May 24. | AFP-JIJI
In a nod to our opinion piece: Malaysia tipping the power balance away from China in South East Asia, China indeed have much to be concerned about with Malaysia’s new leadership.
The new government, led by political heavyweight Mahathir Mohamad, has pledged to review Chinese deals seen as dubious, calling into question Malaysia’s status as one of Beijing’s most cooperative partners in its infrastructure push.
The “once-again-Prime-Minister” Mahathir Mohamed, had already taken action to reduce debt and halt construction projects – especially those signed with China and Chinese companies.
Mahathir, the country’s new prime minister, has announced a planned high-speed rail link between Kuala Lumpur and neighboring Singapore will not go ahead as he seeks to reduce the country’s huge national debt.
The project was in its early stages and had not yet received any Chinese funding as part of “One Belt, One Road.”
But Chinese companies were favored to build part of the line, which would have constituted a link in a high-speed route from southern China’s Yunnan province to trading hub Singapore, along which Chinese goods could have been transported for export.
Work has already started in Malaysia on another line seen as part of that route, and which had received Chinese funding — the $14 billion East Coast Rail Link, running from close to the Thai border to a port near Kuala Lumpur.
Mahathir has said that agreement is now being renegotiated.
Other Chinese-funded initiatives include a deep-sea port in Malacca, near important shipping routes, and an enormous industrial park.
It is not clear yet which projects will be changed or canceled but experts believe axing some will be positive.
As with many Chinese funded project around the world, some of the projects are really self-serving.
Alex Holmes, Asia economist for Capital Economics, backed canceling some initiatives, citing “Malaysia’s weak fiscal position and that some of the projects are of dubious economic value.”
Original Article on Japan Times: Under new leader Mahathir, China’s infrastructure projects in Malaysia are under threat
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