Despite the change in Malaysian government, Chinese companies are continuing to invest in Malaysia, reported The Edge and Malaysiakini.
In fact, China’s e-commerce giant Alibaba still proceeded with the opening of a new office in Kuala Lumpur on Monday (18 June) following Malaysia’s 14th General Election in May, said Beijing’s Ambassador to the country Bai Tian.
Chinese companies also pumped in billions of ringgit in investments even through the Pakatan Harapan party defeated the former administration, he noted
For example, three China-based medical firms invested RM1.2 billion during the first week since the forming of the new government, while Shandong-based D&Y Group has opened Phase II of its factory in Johor.
“China Construction Bank in Malaysia has also decided to purchase RM200 million worth of bonds from the local bond market,” noted Bai.
He also downplayed concerns over the ECRL project, saying that Beijing is looking at the bigger picture in terms of China’s ties with Malaysia, instead of focusing on a specific issue.
Currently, the new Malaysian government is scrutinising mega projects backed by China like the 688km East Coast Rail Link (ECRL). This is due to the project’s peculiar terms and high price tag of more than RM66 billion, with the Export-Import Bank of China loaning 85 percent of the amount at an interest rate of 3.25 percent, while Malaysia will shoulder the rest.
More: Interested In China-Based Developers? Check Out These Properties
Prime Minister Tun Dr Mahathir Mohamad said it is “strange” that the payment to ECRL’s contractor, China Communications Construction Company, is based on a predetermined schedule, instead of actual completion rate.
Moreover, the hefty cost translates to RM80 million per km of rail tracks compared to other local railway projects costing RM50 million per km on average.
Image sourced from Lowyat.NET
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
Home buyers, sellers or property renters who are looking for good investments, may like to visit the New Launches or Project Reviews page. Also, check out your loan eligibility here.
