Is Chinese money an issue? In Malaysia, only at election time
There’s nothing new about foreign investment in Malaysia, as opposition chief Mahathir Mohamad knows well. So why is Chinese money a campaign issue when voters are more concerned about the cost of living?
The Malaysian opposition chief Mahathir Mohamad welcomed foreign direct investment from East Asian economies like Japan, Taiwan and South Korea during his 22-year tenure as prime minister, so why is he so nervous about the billions of dollars of Chinese money pouring into the country now?
The issue has not featured prominently in the campaign so far, as opposition candidates recognise that voters are far more preoccupied with hot-button topics such as the soaring cost of living and the unpopular goods and services tax (GST).
Those in Mahathir’s camp say the premier’s criticism is a red herring, and point out that their leader’s concerns are confined only to certain Chinese-backed projects.
Pointing to Sri Lanka’s current debt troubles, they question whether Malaysia can bear the burden of servicing Chinese loans if the projects go awry.
Mahathir has also voiced displeasure over China-backed luxury real estate projects which he says are aimed at luring foreign property investors rather than at boosting local housing needs.
