Pakatan is not opposed to China investments, says CEP’s Jomo

(Bernama) – The Pakatan Harapan Government does not oppose investments from China and recognises the importance of foreign direct investments (FDIs) and technology transfers from abroad, says economist Prof Jomo Kwame Sundaram (pic).

He said Malaysia appreciated investments that contributed to the country’s progress, such as 5G telecommunications, artificial intelligence applications, financial technologies, renewable energy, new medicines and electric vehicles.

“The new government clearly favours productive industrial investments, especially with Prime Minister Tun Dr Mahathir Mohamad’s commitment to accelerating Malaysian technological progress,” he said in a letter to the Financial Times that was published Thursday.

Jomo, who is also a member of the Council of Eminent Persons, said after the country’s independence in 1957, the Malaysian Government had always invited FDIs.

“Caricaturing the country’s political debate over investments from China risks misleading all concerned.

“For example, the RM67bil East Coast Rail Link (ECRL) project is not economically viable and the cost overruns for such large projects are the international norm,” he said.

Jomo said the ECRL project was not an investment from China, but a huge loan from China’s export-import bank for 85 percent of projected costs on preferential terms, adding that there has been considerable public opposition to such projects and associated debt liabilities.

“The project was awarded by the previous government to a Chinese company without any competitive – let alone transparent – process, with various special privileges, including tax exemptions.

“On May 9 (election day), Malaysians resoundingly rejected irresponsible FDIs and dubious loans that could burden and ruin economies and their greedy Malaysian enablers, but popular opposition to such projects does not constitute a blanket opposition to all investments from China,” he added.