KUALA LUMPUR: Malaysia will not impose a blanket ban to all foreign investments from China, but will say a definite ‘No’ to “irresponsible foreign investments and dubious loans that can ruin economies."
Council of Eminent Persons member Prof Dr Jono Kwame Sundaram said all Malaysian governments since independence in 1957 have invited foreign direct investment and caricaturing the Malaysian political debate over investments from China risks misleading all concerned. Malaysia will take a shrewder view on investments from China.
Jomo was responding to an article carried by the London-based Financial Times newspaper on May 16 which suggested that the new Malaysian government would be "antagonistic” to investments from China.
In his letter to the editor which appeared in the paper's May 23 issue, Jomo said this misrepresented the popular Malaysian rejection of the kleptocracy that ruled the country in the last decade.
He said popular opposition to projects like the RM67 billion East Coast Rail link (ECRL) project does not constitute a blanket opposition to all investments from China.
"The new Malaysian government is much more discriminating and recogises that foreign direct investments and technology transfers from abroad will be crucial to future progress.
Given Prime Minister (Tun) Mahathir Mohamad’s commitment to accelerating Malaysia's technological progress, he said the new government clearly favours productive industrial investments.
This would include 5G telecommunications, useful artificial intelligence applications, financial technologies, renewable energy, new medicines and electric vehicles.
Jomo said the controversial ECRL has garnered much public opposition for its associated debt liabilities.
"The previous government awarded the project to a Chinese company without any competition, let alone a transparent process and there are also various special privileges including tax exemptions.
Despite a consultant’s advice, it was expedited to start this year and scheduled to be completed in seven years instead of the recommended 18 years.
However, barely four months later, about a quarter of the total loan had already been disbursed.” said Jomo who was also former United Nations Assistant Secretary General for Economic Development.