Forget the US$23 billion question. China-Malaysia ties are strong

Malaysian businessmen say the shelving of joint projects by the administration of Mahathir Mohamad should be welcomed as the move could provide more transparency – and ultimately, more support for Belt and Road projects

Reading Time:2 minutes

Malaysian Prime Minister Mahathir Mohamad has called into question China-backed deals worth US$23 billion. Photo: EPA

Published: 6:46pm, 10 Oct 2018Updated: 4:07pm, 11 Oct 2018

Investors should be bullish regarding the China-Malaysia economic relationship, regardless of the uncertainty surrounding joint projects worth US$23 billion that have been called into question by Malaysian Prime Minister Mahathir Mohamad.

That was the message from top Malaysian businessmen who addressed the South China Morning Pos t’s China Conference in Kuala Lumpur on Wednesday.

Francis Yeoh, the executive chairman of the YTL Group, used the example of the East Coast Rail Link, a US$13 billion railway project which had been put on ice by Malaysia’s new Pakatan Harapan-led government pending a feasibility study. The administration cited concerns over its cost and what it fears will be low demand for the service.

Yeoh said such scrutiny was to be welcomed, as transparency would boost public support.

“There is the perception [the “Belt and Road Initiative”] is a Chinese project for domination and influence, this occurs if you don’t position the narrative well. But if nations welcome [belt and road] projects in a transparent way, hold them up to public scrutiny, then the world players will come,” he said.

YTL Group executive chairman Francis Yeoh. Photo: Handout

Infrastructure projects created jobs, he said, but transparent and coherent frameworks were still needed as “billions and trillions” of dollars went into such projects.

Yeoh suggested that infrastructure projects should be undertaken through domestic financing and using the nation’s currency, to avoid volatility. He suggested bonds of up to 50 years for infrastructure projects to raise capital locally.