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Is the 1MDB debacle pushing Najib towards China?

MP SPEAKS The last two years have been hard on Malaysian Prime Minister Najib Abdul Razak.

The 1Malaysia Development Berhad (1MDB) scandal, involving top bankers, tycoon businessmen and politicians to the tune of billions of dollars, has left Najib red-faced.

Despite continuous rhetoric of innocence, Najib’s counterparts have snubbed him, resulting in fewer visits from heads of states and foreign direct investment making a detour to other South-East Asian countries, including Indonesia.

Desperate to attract funds into Malaysia and regain the trust of Malaysians, Najib fell flat for China’s promise of large stacks of renminbi. China has already extended a helping hand by buying up 1MDB’s allegedly bad investments.

In November, China General Nuclear Power Corp said it would pay US$2.3 billion in cash and take on an unspecified amount of debt for a group of power plants from debt-ridden 1MDB.

Within weeks, the China Railway Construction Corp agreed to buy a 60 percent stake in a 1MDB property project called Bandar Malaysia for US$1.7 billion in a joint venture with Malaysian Iskandar Waterfront Holdings.

And it’s been confirmed that the East Coast Rail Link will be funded and built by China.

So Chinese money did not just stop insolvency proceedings against the sovereign fund, but Najib’s cozying-up to the superpower is bringing in even more cash.

It’s an open secret that Beijing’s power manipulation has had countries such as Vietnam, Cambodia and the Philippines at loggerheads.

And it’s now using its economic might as a leverage point to continue wooing countries in South-East Asia, such as Malaysia, under its ambit.

But at what cost, one may ask, particularly with regards to matters concerning foreign policy. Malaysia has not just been maintaining pindrop silence on the South China Sea dispute but also ignored claims that Malaysian fishermen were bullied by Chinese coast guards early this year.

Najib will also be exploring deeper defence cooperation, playing straight into the hands of China, which has been dogmatic about dislodging Washington's grip on Asian countries.

Najib is clearly aligning himself with Beijing after the souring of relations with the US when its attorney-general brought about a civil suit to recover billions in assets bought in America using allegedly stolen money from 1MDB.

The catch here is that China cares two hoots about human rights or accountable governing practices, what with its own records that stink of rampant corruption and a total disregard for civil liberties and basic rights.

Najib calls China a "true friend and strategic partner”. Chinese President Xi Jinping says China’s relations with Malaysia is akin to “being as close as lips are to teeth”.

My only concern is that one day China will bite Malaysia real hard as it knows Malaysia is in its pocket, as the needy partner.

And when that happens Malaysia may be forced to toe the line, for fear of angering China.


CHARLES SANTIAGO is Member of Parliament, Klang.

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