Malaysia power shift hits China infra drive

Malaysia was once a loyal partner in China’s globespanning infrastructure drive but a new government is now pledging to review Beijingbacked projects, threatening key links in the initiative.

Kuala Lumpur’s previous regime, led by scandal-mired Najib Razak, had warm ties with China and signed a string of deals for Beijing-funded projects, including a major rail link and a deep-sea port.

The new government, led by 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.

“Malaysia under Najib moved quickly to approve and implement projects,” Murray Hiebert, a senior associate from thinktank the Center for Strategic and International Studies, told AFP.

Chinese foreign direct investment into Malaysia stood at just 0.8% of total net FDI inflows in 2008, but that figure had risen to 14.4% by 2016, according to a study from Singapore’s ISEASYusof Ishak Institute.

However, Hiebert said it was “widely assumed” that Malaysia was striking quick deals with China in the hope of getting help to cover debts from sovereign wealth fund 1MDB.

Najib and his cronies were accused of stealing huge sums of public money from the investment vehicle in a massive fraud. Public disgust at the allegations — denied by Najib and 1MDB — helped topple his government.

Malaysia’s change of government has left Najib facing a potential jail term — and appears to have already unsettled Beijing’s plans in the country.AGENCIES

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