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MALAYSIA-CHINA-DIPLOMACY-TRANSPORT
Malaysia says still in talks on China-backed rail project
KUALA LUMPUR, Jan 30, 2019 (BSS/AFP) – Malaysia and China are still in
talks about a multi-billion-dollar, Beijing-backed railway project, the
finance minister said Wednesday, after a week of confusing and contradictory
statements about the deal.
Since the shock defeat last year of a long-ruling, corruption-plagued
regime in Malaysia, the new government has suspended a series of Chinese-
financed infrastructure projects, including the rail line.
Critics said the projects lacked transparency, could saddle Malaysia with
debt, and were in reality aimed at quickly funnelling cash to former leader
Najib Razak to help him pay back cash looted from a sovereign wealth fund.
At the weekend, Economic Affairs Minister Azmin Ali said the government had
made a final decision to cancel the 81 billion ringgit ($19.7 billion) rail
link, which would have connected the eastern and western coasts of peninsular
Malaysia.
But hours later, Finance Minister Lim Guan Eng expressed shock at the
announcement. On Tuesday, Prime Minister Mahathir Mohamad said the project
could “impoverish” Malaysia and he was seeking China’s “understanding” — but
also insisted no final decision had been made.
On Wednesday, Finance Minister Lim said that the cabinet had agreed at a
meeting that negotiations about the project were indeed still ongoing — and
from now on only Mahathir would comment on the issue.
He said the discussions between the two countries would now be held “away
from the public glare”, official news agency Bernama reported.
“Of course there is a time frame, but let’s discuss the matter in a
confidential manner.”
The new administration, which came to power in May after toppling a
government that had ruled for six decades, is an uneasy coalition that came
together with the principal aim of ousting Najib.
While Mahathir has much experience in national-level politics — he is 93
and had a first stint as premier from 1981 to 2003 — many of his colleagues
are serving in the national government for the first time.
Najib’s government was toppled in large part due to allegations that he and
his cronies looted billions from state fund 1MDB, and spent it on everything
from yachts to pricey artworks. He has been arrested over the scandal but
denies any wrongdoing.
BSS/AFP/RY/1640 hrs