[ad_1]
KUALA LUMPUR (BLOOMBERG) – Malaysian Prime Minister Mahathir Mohamad is pushing back China's domination of the economy, blocking billions of dollars in contracts as it tries to renegotiate them.
He will visit China in August It has not been unveiled yet – to discuss these projects and try to win markets that, according to him, should be more favorable to Malaysia.
China has $ 34 billion infrastructure projects in Malaysia brokered by the previous government of fallen leader Najib Razak, the deals that Mahathir said have favored Chinese investors over the past year. Malaysian economy.
Among his concerns are large sums that the government borrowed from China and entrepreneurs who use Chinese labor and equipment. East Coast Rail Link, which was under construction by China Communications Construction Co. with an estimated price of 81 billion RM. Two energy pipeline projects were also blocked.
The Mahathir movement comes against the backdrop of growing concern in Southeast Asia about the spread of China's influence in the region. China's multibillion-dollar belt and road initiative for the construction of roads, railways and ports fuels the fear of growing debt in poor countries like Myanmar and Laos. China's shares in the South China Sea are also a source of tension
"Nationalist Position"
Malaysia has been one of the largest recipients of Chinese investment in the fifteen years between Mahathir and his last leadership position. "We expect a negative impact on future Chinese-related investments in Malaysia because of PM Mahathir's nationalist position on investment," said Chua Han Teng, head of Asia. "However, we are waiting for a compromise to mitigate the effect, with Malaysia not wanting to upset a major trading partner and China likely to give priority to its ambitious belt and road initiative, whose projects in Malaysia are A
Here is an overview of the evolution of China's economic ties with Malaysia in recent years:
1. Trade
Malaysia is China's largest trading partner in Southeast Asia after Vietnam, with total trade of US $ 92.4 billion last year.In 2003, when Mahathir ended his first period as prime minister, this figure was less than one A quarter of it.
Malaysia is one of the few economies in Southeast Asia to generate a trade surplus with China and oil palm oil. liquefied last year, Malaysia ae US $ 54.4 billion to China, about 18% of its total shipments. In 2003, this figure was only US $ 14 billion
Malaysia imports electrical products, machinery and equipment from China.
2. Investment
Official data show that Chinese foreign direct investment in Malaysia has increased by more than 700% in the last decade to RM 9.9 billion last year, a much larger increase than any other country of origin. Malaysians on sovereignty, debt and the risk of creating white elephant projects.
"Dr. Mahathir and China are examining the definitions of investments from their own experience and perspective, and therefore differently," said Oh Ei Sun. for international affairs at the Asian Institute of Strategy and Leadership of Kuala Lumpur
"It is important that both parties free themselves from their differences of preferences and expectations."
3. Tourism
Chinese tourists are now the third largest group of visitors to Malaysia after Singaporeans and Indonesians, attracted by sandy beaches, a culture shared in a country where a quarter of the population is ethnically Chinese, and a love of durian spicy
This growth has supported a tourism industry that now accounts for about 15% of gross domestic product. Total tourism receipts in Malaysia have increased 54% in the last decade to RM 82.1 billion in 2017.
4. Immigration
Chinese nationals were the largest group of participants in the Malaysia My Second Home program, an international residency program that allows wealthy foreigners to live in the Southeast Asian country on a long-stay visa . Chinese citizens accounted for nearly 30% of successful applicants since the program was launched in 2002.
5. Ownership
Increased Chinese migration has helped support real estate demand in Malaysia, particularly in the city of Johor Bahru, south of Singapore, and in Penang and Melaka states, according to Knight consultants Frank LLP
. , Malaysia is a cheaper alternative to the real estate markets in Australia, Hong Kong and Singapore. What also matters in favor of Malaysia, is a lower entry cost for goods and cultural ties that make food and language familiar to Chinese buyers.
The Chinese University of Xiamen is also the first in the country to open a foreign campus. outside Kuala Lumpur to strengthen links between Chinese and Malaysian students and academics.
[ad_2]
Source link
