– BernamaAll eyes and ears: Anwar chairing the first special Cabinet meeting of the Unity Government at Perdana Putra.
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PUTRAJAYA: Datuk Seri Anwar Ibrahim will not receive any salary, both as Prime Minister and as Finance Minister, he has clarified.
Cabinet ministers have also agreed to a 20% pay cut until Malaysia reaches economic recovery, he said.
Rubbishing talk that he would be paid as Finance Minister although he had declined the salary for the top job, Anwar announced he would not be taking any form of government salary.
This was in line with his promise made during the election campaign, he said.
During the campaign, Anwar had said he would not take a salary if he was appointed as prime minister because the people themselves were struggling to cope with rising costs.
“Some people say I’m not taking the Prime Minister’s salary because I am the Finance Minister. That’s not true. There is only one salary,” he said, laughing off such claims during a press conference here yesterday.
ALSO READ:Budget to be enhanced with MOF, Cabinet views
The Members of Parliament Act (Act 347) only allows one salary for ministers, deputy ministers or political secretaries.
On the Cabinet ministers’ pay cut, he said this was their way of acknowledging the tough times faced by the people.
“The pay cut will be implemented as long as Malaysia continues to recover economically.
“It shows the ministers are also concerned about the livelihood of the public,” he said.
Asked if the pay cut would be carried out throughout the government’s five-year tenure, he simply said that it could range from three to five years, depending on the situation.
Cabinet to take 20% pay cut
Prime Minister Anwar Ibrahim thanks his ministers “for their willingness to make some sacrifices” and said this was to show the government’s concern for Malaysians.
Calmer days: In this May 9,2018, photo, Dr Mahathir with Muhyiddin
speaking to reporters after the results of GE14 was announced.
Yesterday, the King declared Muhyiddin as the Prime Minister. – AP
“WATCH for the game within the game, ” a tycoon who bankrolls political parties told me over coffee in Kuala Lumpur on Monday.
On that afternoon, Tun Dr Mahathir Mohamad shockingly announced that he quit as the Prime Minister.
The tycoon and I were discussing the botched Sunday game plan to install a Perikatan Nasional (or is it Pakatan Nasional?) government.
Something awry had happened which went against the playbook of the Perikatan Nasional plotters.
Was it because the rule of the game was changed?
Was it that the politicians had played each other out?
Was there a game within a game?
In this fast-paced political game, the entire truth has not surfaced, but soon we’ll know.
Tuesday and Wednesday’s process of the King meeting 220 MPs (except for Dr Mahathir and Padang Regas MP Datuk Seri Nazri Aziz who was overseas) individually looked like a done deal. Pakatan Harapan, Parti Pribumi Bersatu Malaysia (which quit PH on Monday), sacked PKR deputy president Datuk Seri Azmin Ali and his 10 MPs, and other minor parties had endorsed Dr Mahathir.
Then came the game within the game.
On Tuesday, after their MPs met the King individually, PKR, DAP and Amanah (which are in Pakatan Harapan) announced that it had backed PKR president Datuk Seri Anwar Ibrahim.
From a quick MPs calculation, PH with 92 MPs minus Barisan Nasional/PAS/PBRS with about 60 MPs (who not all are voting according to party line) which voted for bubar (Parliament dissolved), it was clear that Dr Mahathir had lost the vote count.
Many thought that the master of the game, Dr Mahathir, kena game (had been played).
On Thursday, Dr Mahathir – without waiting for the King to reveal the outcome of his majesty’s face to face meeting with individual MPs – declared there was no prime minister candidate with a clear majority. The interim Prime Minister announced there would be a special Parliament sitting on March 2 to determine who will be the next prime minister.
However, on Friday, the Parliament Speaker Tan Sri Mohd Ariff Yusof announced that there would not be a special Parliament sitting to determine who will be prime minister.
On that day, Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah decided to give party leaders who have MPs in the Dewan Rakyat the opportunity to nominate a prime minister.
The frontrunners to be our next PM were Bersatu president Tan Sri Muhyiddin Yassin and PKR president Anwar. Seemingly, Dr Mahathir was out of the game.
The fight was shaping up to be Perikatan Nasional (a Muslim and Bumiputera majority government) versus Pakatan Harapan (a non-Muslim majority government).
From the WhatsApp messages I could barely have time to monitor, the rakyat choice depended on who they hated the most.
Some who hated DAP supported the Perikatan Nasional government and those who hated Umno and PAS preferred the Pakatan Harapan government.
Grassroots politicians were getting emotional. Some were hysterical that they have to swallow the hate words they uttered against their political enemies as they might be in the same government.
Last night, a retired veteran journalist WhatsApp-ed me: “Instead of the tik-tok of the horse race and the numbers, why isn’t anyone reporting what this is all about: a battle for Malaysia’s future and what kind of country we want to be?
“A Malaysia focused on race and religion, or a Malaysia focused on building a better tomorrow in the Digital Age?”
I agree with him.
But the game is played fast and furious that we’re trying our best to keep pace with it.
Based on a quick calculation of MPs from political parties, in the numbers game, Muhyiddin had more than Anwar.
Bersatu 36 MPs (from 26 overnight it increased by 10 MPs with Azmin and gang), Umno 39 MPs, PAS 18 MPs, Gabungan Parti Sarawak 18 MPs and minor parties, Muhyiddin won.
Whereas Anwar only had his Pakatan Harapan ally (PKR 39 MPs, DAP 42 MPs and Amanah 11 MPs).
Game over for Anwar?
No. On Friday night, it became clear that the party leaders had no control of their MPs who had different allegiance. Karma had struck Bersatu – it was civil war between Team Mahathir and Team Muhyiddin.
Some sleeper MPs were awakened to go against their party leader.
Some MPs are honourable.
Some are for sale.
Not surprising as this is the games politicians play.
The shocker was yesterday. Dr Mahathir was back in the game.
The interim Prime Minister had thrown his name in the Game of Thrones. He was now the game-changer.
Some of those who backstabbed him when they met the King on Tuesday and Wednesday were now backing him.
Yesterday, the situation was very fluid. Too many games played and play outs.
I would have preferred a bubar endgame.
Let the rakyat be the kingmakers instead of MPs.
The endgame turn out to be the king declaring Muhyiddin as Prime Minister.
To the winners of the Game of Thrones, I wish them: GGWP (Good Game, Well Played).
It added to the country's debts and we cannot afford it, explains Dr. Mahathier
Headline News
THE cancellation of two multi-billion dollar projects in Malaysia awarded to companies from China ends months of uncertainty, besides marking new parameters for investment by companies from the world’s second largest economy.
Tun Dr Mahathir Mohamad announced the cancellation of the RM55bil East Coast Rail Link (ECRL) and two gas pipeline projects worth RM9.41bil at the end of his five-day visit to China.
The Prime Minister said the projects only added to Malaysia’s debts and had to be cancelled until the country could afford it.
He said China’s leaders understood Malaysia’s plight and their response was positive.
He said he explained to President Xi Jinping, Premier Li Keqiang and chairman of the National People’s Congress Li Zhanshu why Malaysia could not go on with the projects.
“It is all about borrowing too much money, we cannot afford it, we cannot repay and also because we do not need them.
“The Chinese see our point of view and none of the three leaders said ‘no’.
“They understand why we have to reduce our debts,” Dr Mahathir told Malaysian journalists here yesterday before wrapping up his official visit.
Asked about compensation, he said details including the amount would have to be negotiated and worked out by officials later.
“If we have to pay compensation, we have to pay. We cannot afford it, so we must find a way to exit it at the lowest cost possible,” he added, blaming the previous government for entering into such unfair agreements with huge exit costs.
Both projects were awarded under the previous government in November 2016 during an official visit to China by former prime minister Datuk Seri Najib Tun Razak. Since Pakatan Harapan took over, China’s investments in Malaysia and large-scale infrastructure projects have come under intense scrutiny.
Both the railway and gas pipeline projects were mired in controversy with huge advance payments made not corresponding with ground work.
Dr Mahathir also laid out the types of investments that Malaysia wanted to attract, citing foreign direct investments (FDIs) which brought in capital and technology, and hiring of locals to produce goods for local consumption or export.
“This is the meaning of FDI, not buying land and setting up new cities. We want our people to be employed and they (China) agreed,” he added.
Criticism on previous construction projects undertaken by companies from China was that it had little multiplier effects on domestic economy because almost everything was brought in from there.
As per the ECRL project, most of the railway track work was slated to be handled by companies from China despite Malaysia having many companies with such expertise. And as for the two pipeline projects, an average of only 13% of the work was done but the amount drawn down was a staggering 88% of the total cost of RM9.4bil.
No local company was known to be undertaking the gas pipeline jobs.
Dr Mahathir in the past also criticised land and reclamation rights being sold to property developers from China to build large-scale property projects, especially in Johor.
Asked what happened to the money that had been drawn down, he said it should be recovered from Najib.
“He was the one who entered (into the agreement), I have never heard of a contract in which you pay on time without any condition that the work must be done,” he added.
Economists said investors had been waiting for some kind of direction on China’s investments here with Pakatan in power.
Socio Economic Research Centre executive director Lee Heng Guie said the impact of the cancellation of the projects to the Malaysian economy would be manageable, although there would be some negative effect on consumption and investment.
“There could be some impact on the job market with the expected layoffs.
“But I don’t think the cancellation will pull down investment and consumption significantly.
“Whatever contraction of the economy that we will likely see because of the ECRL cancellation should be cushioned by ongoing projects,” Lee added.
All quiet: Workers at the ECRL site in
Bentong, Pahang, are waiting for an announcement from their management
after Dr Mahathir cancelled the project .
BENTONG: While some workers involved in the East Coast Rail Link (ECRL) are in shock over the scrapping of the project as announced by the Prime Minister, some areas have yet to see any work despite the launch of the 688km line about a year ago.
Several construction workers said they were left in the dark over the matter.
“Right now, we don’t know what the actual status of the project is.
“We are still waiting for an announcement from the top management,” a senior construction worker told The Star on condition of anonymity.
Another construction worker also expressed a similar sentiment, saying that the ECRL project consisted mainly of Malaysian workers.
“Workers from China comprised 18% to 20% of the staff,” he said.
A security guard at the Bentong ECRL project site said the workers’ quarters were already deserted a month ago.
In July, Singapore’s Channel NewsAsia reported that the fallout had already seen half of the workforce, mostly Malaysians, being retrenched.
A source from the Malaysian Rail Link (MRL), the project owner of ECRL, confirmed that the retrenchment did indeed take place.
“The China Communications and Constructions Company (CCCC) started layoffs a month ago when the project was suspended.
“Half of them are already retrenched and the Chinese workers were told to leave,” said the highly placed source.
Top officials in the MRL are said to be shocked by Tun Dr Mahathir Mohamad’s announcement as it was understood that they were in discussion with the Council of Eminent Persons (CEP) and the Transport and Finance Ministries to come up with several options to scale down construction costs.
“The MRL has paid more than RM10bil to the main contractor, the China Communications and Constructions Company and there is a claim of RM9bil for work done.
“So it will be quite a waste because the figure to compensate them is quite high,” he said.
The project was launched on Aug 9, 2017, and scheduled for completion in 2024.
In Kuantan, at the site in KotaSAS where the project was launched with much fanfare, all that remains is an empty swathe of land.
Besides the ongoing construction to build the new Pahang administrative centre nearby, it was all quiet at the site where former prime minister Datuk Seri Najib Tun Razak performed the ground-breaking ceremony.
A security guard at the site said no actual rail construction had been carried out since the launch.
The guard, who declined to be named, said there were no workers from China or an ECRL office located at the site.
He was surprised when told of Dr Mahathir’s announcement.
“But then again, there was never any railway construction here. So, there’s nothing to stop,” he said.
A large signboard near the site stated that the KotaSAS Central station would open in 2021.
PETALING JAYA: The Yang di-Pertuan Agong, Sultan Muhammad V, has consented to the appointment of Tommy Thomas (pic) as the new Attorney-General (AG).
In a statement, the Comptroller of the Royal Household Datuk Wan Ahmad Dahlan Ab Aziz said the King, on the advice of the Prime Minister, has given the approval to the appointment of Thomas as the AG according to Article 145 (1) of the Federal Constitution.
The Agong, said Wan Ahmad, has also called on Malaysians to accept the appointment of the AG, adding it should not create conflict as every Malaysian should be treated fairly regardless of their race or religion.
“The appointment would still continue to uphold the special privileges of the Malays and bumiputra as well as Islam as the religion of the Federation,” said Wan Ahmad.
He said the Agong has also approved the termination of Tan Sri Mohamed Apandi Ali as AG after taking into consideration the views of the Malay Rulers on three issues.
These issues are the appointment of the AG, the rights of the bumiputras, and the rule of the Council of Rulers as stated under Article 153 of the Federal Constitution.
“The King has also expressed his disappointment (dukacita) and worries on media reports of late that were inaccurate and negative in nature, which could threaten the peace and harmony in the nation.
“The King has the obligation to uphold the Federal Constitution and preserve the rights of the Malays and bumiputras, as well as to protect Islam,” he added.
Prime Minister Tun Dr Mahathir Mohamad, on May 14, announced that Apandi was told to go on leave and would be temporarily replaced by Solicitor-General Datuk Engku Nor Faizah Engku Atek.
The proposal to appoint Thomas as AG had sparked a disagreement with the King, but Dr Mahathir was adamant and submitted only Thomas' name to the King.
However the Agong insisted on more than one name, according to sources close to the royalty.
Malaysians expressed their joy and gratitude to the Yang di-Pertuan Agong, Sultan Muhammad V, for giving his consent for Tommy Thomas to be appointed the new Attorney-General (AG).
On The Star Online Facebook page, Thomas’ announcement received 291 shares, and 2,100 likes within an hour of the news breaking early Tuesday morning.
John Doraisamy said Malaysia and Malaysians were moving in the right direction.
“Happy to be 1Malaysia without racism,” he posted.
“Thank you to His Majesty YDP Agong for your royal consent. Congratulations to the new AG!” he said.
Justin Tan said Malaysia had reached a new milestone with Thomas' appointment.
“Everyone should be treated equally and fairly regardless of their race or religion.
“Hope this signifies a true Malaysian society based on merit that will push the country forward to becoming the next powerhouse in the region,” he said.
Meanwhile, Facebook user Rajasegaran Subramaniam called for the Federal Constitution to be made a compulsory subject in schools and universities due to the controversy surrounding Thomas’ appointment.
“It is pain in the eyes witnessing so called new Malaysia citizens commenting on sensitive issues without any ideas on what they are even commenting.
“(The) past two days was one hell of a rollercoaster ride because of ignorant comments from ‘new Malaysia’ citizens,” he said.
In a letter dated June 4, but released early Tuesday (June 5), the Comptroller of the Royal Household Datuk Wan Ahmad Dahlan Ab Aziz said the King, on the advice of the Prime Minister, has given the approval to the appointment of Thomas as the AG according to Article 145 (1) of the Federal Constitution.
The King, said Wan Ahmad, has also called on Malaysians to accept the appointment of the AG, adding it should not create conflict as every Malaysian should be treated fairly regardless of their race or religion.
“The appointment would still continue to uphold the special privileges of the Malays and bumiputera as well as Islam as the religion of the Federation,” said Wan Ahmad. The Star
WHEN I attended an election rally of Pakatan Harapan in Wangsa Maju, Kuala Lumpur, two weeks ago, I was delighted to see the Malays, Indians and Chinese clapping hands in unison when PKR’s vice-president Tian Chua promised that the coalition would look after the interests of all, regardless of race, once it came into power.
I was touched by the reactions on the ground. It was a good feeling to be among people who share similar aspirations for racial harmony and welfare for all in this multiracial country.
My son also had the same experience at a Pakatan ceramah in Hulu Kelang, Selangor, last week.
It was drizzling and he was soaked. Then a Malay man gave him a shirt to change. He came home telling me he hoped that Pakatan would win to bring back the long-lost spirit of muhibbah and unity.
The spirit of muhibbah had for a long time turned into a rare commodity because the authorities allowed political opportunists to disrupt peace with their disparaging remarks against other communities and religious groups.
Now that Pakatan has toppled the Barisan Nasional government led by Datuk Seri Najib Tun Razak in the May 9 general election, it is natural for Malaysians like me and my son to expect a better tomorrow where divisive racist politics is curbed, if not eliminated.
I look forward to the return of the good old days when the spirit of muhibbah among races prevailed.
This expectation is not unrealistic, given the emphasis to multiracialism and unity in the speeches of leaders under Pakatan led by Tun Dr Mahathir Mohamad.
The former premier, once disliked by some Chinese for his past racist rule but who appears to have repented, is now the Prime Minister.
But as Dr Mahathir, who has galvanised almost all Opposition forces against Najib for the latter’s association with the 1MDB (1Malaysia Development Bhd) controversy, is likely to play a key part in governing and “saving” the country, his policy speeches made during campaign are in focus now.
While Dr Mahathir has promised to get rid of corruption in government and Felda, he has also pledged to remove the 6% Goods and Services Tax (GST) and reintroduce fuel subsidies – two issues that have impacted the lower-income group negatively.
But if GST is removed and fuel subsidies are reinstated, Dr Mahathir’s government will have to implement measures to ensure that Malaysia’s fiscal position will not be undermined by populist moves.
With the prices of oil and gas returning to a four-year high, the impact on government finance may be cushioned slightly this year. But for the longer term, sustainability is in doubt.
Indeed, international rating agency Moody’s cautioned yesterday that these campaign promises, if implemented without any other adjustments, would be “credit negative for Malaysia’s sovereign”.
A downgrade in sovereign rating will have a negative impact on the ringgit, interest rates and ranking of our bonds.
It may also affect foreign portfolio investments.
But as Dr Mahathir is a deft hand at crisis management, having led the country out of the 1986 recession and 1998 Asian financial and local political crisis, he should have the wits to forestall any fiscal shortfall.
With many businessmen and economists silently supporting Pakatan, there should be no shortage of talent to help him manage the economy.
These skilled people may emerge in the open soon.
What worries businessmen and economists most is the doctor’s pledge that China investments in Malaysia would be reviewed, and terminated if there were unfair terms in current contracts.
But as Selangor and Penang have attracted substantial direct investments from China, PKR’s Datuk Seri Azmin Ali and DAP’s Lim Guan Eng could present an objective and clearer picture of Chinese investments to Dr Mahathir.
While it is difficult to revoke the East Coast Rail Link (ECRL) due to the vast economic benefits it can bring to the country and the favourable terms in loan repayment, it is easier for Malaysia to delay the implementation of the Kuala Lumpur-Singapore high-speed rail project or stop China from getting the contract.
But before doing anything drastic to cut down national debt, government lawyers have a duty to advise the chief commander on paying vast compensation for breach of contract. As China views Malaysia as a strategic location in its ambitious Belt and Road Initiative, Beijing has been following the political developments closely.
But to be sure, Dr Mahathir was a business-friendly leader when he was the Prime Minister, the first time around.
He was responsible for allowing direct trade between Malaysia and China in the late 1980s, which led to China becoming our largest trading partner. Hence, he is not expected to make policies detrimental to the economy.
One question many people are asking now is: will Malaysia become more democratic under Pakatan rule?
From the campaign speeches made by the coalition’s strategists and Dr Mahathir, this appears to be so – at least for the foreseeable future.
Two PKR vice-presidents, Rafizi Ramli and Tian Chua, have told voters that if one day Pakatan becomes corrupt, the people should vote the coalition out – just like how they brought Najib down.
What Pakatan wants to see is a two- or three-party political system where people have a choice to pick the best among the contenders.
Since Malaysians have boldly voted out Barisan that ruled for over six decades, there is no reason why Pakatan cannot be toppled if it is corrupted by power and greed.
In the campaign speeches, Dr Mahathir promised that he would pass the baton to Datuk Seri Anwar Ibrahim, who will be released from jail next month.
Will he keep this promise after assuming the powerful post?
The logical answer is he will. At 93, his health may not permit him to carry on with this high-pressured job.
It will also be politically unwise for him to stay beyond his welcome, as Anwar had originally been the choice of the coalition before Dr Mahathir came into the picture.
Many have high expectations of Anwar, who has the experience of an acting premier, deputy premier and finance minister before he was sacked from the Cabinet in 1998 by Dr Mahathir.
Having survived bitter political battles and endured imprisonments under Dr Mahathir and Najib from 1998 until now, Anwar should understand the people’s needs better and rule with a multiracial outlook.- by Ho Wah Foon The Star
Related:
Why Malaysia's opposition coalition won the election
Fruitful friendship: National carmaker Proton
was given a boost when Chinese automaker Zhejiang Geely Holding Group
came to its rescue last year.
https://youtu.be/7IUBipqzRaU
https://youtu.be/DDuDZu6WXD4
A graphic being circulated on social media has the Chinese flag planted all over a map of Peninsular Malaysia, suggesting that Red China has taken over our land. The political message is clear: the Najib Administration is hawking the country.
Framed against the backdrop of a heated general election, everything is fair game, with no sacred cows, but the anti-China campaign is detrimental to the country and people.
Besides reeking of racism, it will drive Chinese investors away from Malaysia if the country is perceived as being hostile.
The reality is that many other countries will roll the red carpet for China, inviting the eastern giant to pour money into their countries, but in an emotional elections campaign, rhetoric seems to have prevailed above rationale and logic.
It didn’t help that Tun Dr Mahathir Mohamad, in a recent interview with Reuters, warned that Chinese investors in Malaysia will face more scrutiny if he regained power in the upcoming election.
He reportedly said that Chinese investment was welcome if companies which set up operations in Malaysia employed locals and brought in capital and technology to the country, but “this wasn’t the case now.”
“Lots of people don’t like Chinese investments,” the former prime minister claims, saying “we are for Malaysians. We want to defend the rights of Malaysians. We don’t want to sell chunks of this country to foreign companies who will develop whole towns”.
Last week, Dr Mahathir said Malaysia will stop borrowing from China, adding he would review Chinese investments if his political coalition was put in charge.
He told the Associated Press that “in the case of projects, we may have to study whether we would continue, or slow down or negotiate the terms”.
However, China is Malaysia’s top source of foreign direct investment, contributing 7% of the total RM54.7bil it received last year. That’s not a revenue stream to dismiss flippantly.
Recently, the Chinese Ambassador to Malaysia, Bai Tian, gave a firm reassurance that the republic would import more Malaysian palm oil and palm-based products, stressing there would be no cap on its imports.
He said: “We will not set any limit”, and “there will be no ‘glass ceiling’ for the import of Malaysian palm oil and related products”.
In the first six months of 2017, the total export of palm oil and palm oil products to China grew 9.8% to RM8.52bil, up from RM7.76bil a year ago.
As for the export of rubber and its products to China, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong revealed that China has overtaken the United States and the European Union to become the top export destination for Malaysia. The total export of rubber and related products to China in the first 11 months last year jumped by 76% year on year to RM7.45bil, compared to RM4.23bil in the same period in 2016.
These are real facts and figures. This is not fake news.
All these huge imports by China will directly benefit Felda settlers.
Surely we need to treat our No. 1 customer well, and not kick them in their derriere or allow ourselves to be viewed with fear and ridiculed in election rallies, which we seem to be adept at.
Palm oil is straining under the weight of huge challenges from unfriendly EU countries, which are dead against the industry.
In a move to lift oil seed prices and encourage domestic supply of soybean and grapeseed, even India has raised its import tax on crude and refined palm oil to its highest level in more than a decade.
As one news article reported, “over the last 30 years, China’s economic growth has been phenomenal. A country of 1.3 billion with the biggest number of poor people, has propelled more than 600 million into the middle class.
“She is adding 30 million (incidentally, Malaysia’s total population) to this number every year. Most respectable studies are predicting the Chinese economy will be bigger than the US’ before 2030. Bloomberg says this will happen in 2026.”
As commentator John Lo correctly wrote in Free Malaysia Today: “President Donald Trump’s inward-looking policy is hastening the decline of the US. The US and her allies have ruled the world and imposed their will on other countries in the name of democracy and promise of prosperity for a few hundred years.
“Very few countries have benefited, and many have suffered by adopting or submitting to the US’ will. China’s economic growth model has shown to be better than that of the West’s.
“The US’ presence in Malaysia has helped little to build up our economy. They have been pumping our oil for years but have not given us an oil industry. They have invested a lot more, I really mean a lot more, in Singapore’s oil industry.”
In June 2017, trade with China totalled RM22.75bil, up by 8.7% from RM20.92bil – and the cash registers will ring louder as China’s wealth increases.
Of course, then there’s Proton Holdings, which registered losses of up to RM1bil in 2017. No one dared touch the national car maker, which, to put it politely, was well past the ICU stage. Even a defibrillator was useless.
For decades, Malaysians had to pay so much for imported cars, having to put up with protectionist measures and the obligatory national pride. No one was prepared to tell Dr Mahathir that the business model wasn’t workable anymore.
Then, China stepped in. Chinese automaker Zhejiang Geely Holding Group came to the rescue and took up a 49% stake in Proton. Geely is also the owner of Volvo, Boyue and the London Taxi Company, which produces the city’s iconic cab.
After Proton was sold to Geely, Dr Mahathir said he was saddened, but in 2014, it was he who travelled to China to meet the manufacturer to seek a Proton partnership, a bid which ultimately fell through.
On the tourism front, Malaysia is expected to hit the four million mark for inbound tourists from China this year. This is a trickle from the Chinese point of view, but with a fast-expanding middle class, the figures will surely spike.
One report said that Chinese investments in Malaysia “have continued to be on an uptrend despite the stringent capital control introduced by the Chinese government last year, signalling China’s commitment to pursue long-term investments in Malaysia. Among the projects that have seen significant Chinese investments in recent years are the Forest City in Iskandar Malaysia (RM405bil), the East Coast Rail Link (RM55bil) and Melaka Gateway (RM29bil).
“While the outlook for China’s ODI (overseas direct investments) appears to have dimmed, Malaysia has become the fourth largest recipient of China’s ODI globally this year.
“In the latest China Going Global Investment Index 2017 report by the Economist Intelligence Unit, Malaysia has jumped to fourth position in 2017, compared with 20th in 2015.”
“The significant improvement is mainly a result of Malaysia’s important participation in BRI-related projects, apart from the welcoming attitude towards Chinese investment.”
The stakes are simply too high for politicians to turn China into a bogeyman and instil fear in the voters’ minds, particularly in the Malay heartland.
“I am willing to take a bet that should the Opposition take over the government, they will run to Beijing first for investment. The reason is simple, the US will not invest much here. Europe is down.
“Japan has been in the doldrums for more than 20 years. They need investments more than Malaysia does. It is not wise to run down China’s investment for the sake of political campaigning,” Lo wrote.
He added that “the proper way to address any issue on China’s investments is not to blame the Chinese. They have come because the Government has lobbied hard for China’s investments.
“If the Opposition has any reservations, they should direct their criticism at the Government and not implicate China. To say that China is giving kickbacks is in bad taste and shows insensitivity and crudeness.”
Another favourite China-bashing target concerns Johor’s Forest City project. Claims abound about the loss of sovereignty when, in fact, the properties were constructed on reclaimed land, and not on existing plots in the state. The sprawling property will be built on land that never existed prior.
The developer, Country Garden Holdings, isn’t a fly by night operation. Instead, it is China’s sixth most successful property developer in terms of sales, and has a market capitalisation of US$61.87bil (RM241bil). The owner, Yang Guoqiang, has family assets worth 45.5 billion yuan (RM28bil).
Another bit of nonsense implicating China is the claim that the Government had granted tax exemption to federal projects, such as the East Coast Rail Link (ECRL) built by the Chinese, a move designed to anger the Malays. But during Dr Mahathir’s time, under the Sales and Services Tax (SST) system in the 1980s, exemption was given to several mega projects, including the Kuala Lumpur International Airport (KLIA), Express Rail Link, Smart Tunnel, Bukit Jalil Stadium, as well as to independent power producers.
If GST relief was not offered to China Communications Construction (CCC) Sdn Bhd for the ECRL project, it would have cost a lot more, thus increasing the country’s debt and incurring huge losses.
But leading up to the elections, rhyme or reason get thrown out the window, and facts and figures take a back seat. For some people, in their anger, truths are brushed aside at the expense of damaging the goodwill extended by China.
Those who have dealt with China will tell you they value friendship. They remember their friends – and their foes, too.
Source: Wong Chun Wai
Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.
On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.
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