Malaysian PM Pulls the Country Back From Infrastructure Plans With China

• 31 August 2018
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Photo by World Economic Forum

Malaysian Prime Minister Mahathir Mohamad continues to indicate his plans to abandon the multi-billion dollar Chinese-sponsored infrastructure program agreed to by previous PM Najib Razak.

PM Mahathir has already suspended almost US$25 billion of Chinese projects including the $20 billion East Coast Rail Link and two huge petroleum pipeline projects.

His rationale that Malaysia can’t afford such large-scale infrastructure projects is based on maintaining good relations with China while ensuring projects benefit Malaysia rather than China or Chinese companies.

Under the pipeline contracts, Malaysia has already paid billions of dollars up front with only 14% of work complete. Mahathir’s position is in part justified by the scale of the corruption scandal which has engulfed former PM Razak.

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