The flourish in foreign direct investment (FDI) in the country has proved that the 1MDB fiasco is a thing of the past, says Umno minister Noh Omar

"(1MDB) is no longer an issue," Noh said at a press conference after witnessing the launch of a RM2.1 billion joint-venture for a mixed development project in Kuala Lumpur.

Noh said the government has explained the 1MDB issue in Parliament to the opposition, which until now has refused to listen.

The opposition only wanted to see Malaysia become a failed and bankrupt state, added the urban wellbeing, housing and local government minister.

Noh said when the country was doing well with influx of new foreign investments, the opposition instead talked about nation's sovereignty, particularly in relation to the increase in cooperation between Malaysia and China.

"You know why? Because they feel the foreigners are not interested in investing in Malaysia.

"The more accusations they throw at us, the more investors come to Malaysia," he said without naming any opposition leader.

Last week, former premier Dr Mahathir Mohamad warned Prime Minister Najib Abdul Razak's deals with China may end up threatening Malaysia's sovereignty.

This, he said, includes Malaysia's territorial claim in the South China Sea which is also being claimed by China.

In particular, Mahathir expressed concern over the country's loan of RM55 billion from China to construct the East Coast Rail Link (ECRL).

Speaking to the press, Noh said the deals did not constitute selling the country's sovereignty to China.

"Whatever agreements signed between Malaysia and other countries (only) means FDI will come here to help grow our country," he said.

Earlier, Noh witnessed the inking of an agreement between Titijaya Resources Sdn Bhd, a wholly-owned subsidiary of Titijaya, and CREC Development (M) Sdn Bhd (CRECD) to develop a RM2.1 billion mixed development project.

CRECD is a wholly-owned subsidiary of China Railway Engineering Corporation (M) Sdn Bhd, which is owned by China construction giant China Railway Group Limited.

Titijaya Resources and CRECD will form a 70:30 joint venture partnership to develop 240 units of service apartment and office lots at a 6.06-acre leasehold land at Embassy Row, Jalan Ampang.

Also present were Ma Jia, charge d'affairs ad interim of the China Embassy, Titijaya Land Berhad group managing director Lim Soon Peng and China Railway Dongfang Group managing director Cai Zemin.

Cai was asked about claims that Malaysia's sovereignty was at stake following the increase in cooperation between Malaysia and China.

He replied that the company was constantly looking for investment opportunities in Malaysia and as well as other countries - Indonesia, Philippines and Thailand.

CREC had announced in March that it would spend US$2 billion to set up its regional centre at Bandar Malaysia.

Last year, IWH-CREC, the joint venture CREC and Johor-based Iskandar Waterfront Holdings (IWH) had acquired a 60 percent stake in Bandar Malaysia from 1MDB.