M'sian govt must 'pay price' for axing infra project deals, says China daily

PETALING JAYA (June 1): The Malaysian government must pay compensation if it decides to cancel its infrastructure projects involving Chinese funding and contractors, warned Chinese daily Global Times.

The op-ed piece, penned by its reporter Hu Weijia, questioned the new administration’s move to review, renegotiate or put off big-ticket projects — some involving Chinese contractors or investments, such as a Chinese rail deal that aims to connect the South China Sea at the Thai border in the east with the strategic shipping routes of the Strait of Malacca in the west, according to Reuters.

“If Mahathir wants to review big projects agreed to by his predecessor and damage the interests of Chinese companies, those companies have the right to claim compensation.

“Chinese-funded projects are not a gift that Kuala Lumpur can refuse without compensation.

“If Malaysia’s new government fails to adhere to the spirit of the contract, it has to pay the price for its error.”

The daily also criticised the government’s latest move to stop the Kuala Lumpur-Singapore high-speed rail project — which Malaysia and Singapore had officially agreed to build in 2013 — as likely to damage the interest of China or other economic partners.

“Is this the way Malaysia keeps its promises and adheres to the spirit of the contract?

“Companies from China, Japan, South Korea, Europe, Singapore and Malaysia were reportedly eyeing contracts to build and operate the project, but now all of their efforts may be in vain due to the inconsistency and capriciousness of Kuala Lumpur.”

The daily also said there were other investment destinations for foreign infrastructure businesses.

“It's very easy for Chinese companies to shift their focus to other countries, but Malaysia’s economy is the one that will suffer big losses.”

Global Times said that uncertain economic policies driven by political factors are partly why developing countries have failed to achieve economic take-off.

“Hopefully Malaysia’s new government will not make this mistake. We believe Malaysia will handle the problem properly. Sino-Malaysia friendship is time-tested.

“Malaysia is a key point along the routes of the Belt and Road Initiative. Chinese investors will continue to look closely at Malaysia’s economic situation in search of opportunities for cooperation.”