A PKR lawmaker raised concerns over the possibility that a major government-linked company (GLC) would be sold to China as part of a quid pro quo arrangement.

Pandan MP Rafizi Ramli said he previously received information that a government-linked conglomerate will be listed in Singapore next year, with the majority stake being offered to China.

Rafizi, who founded the National Oversight and Whistleblowers Centre (NOW), said he did not go public with the information pending more evidence but a Financial Times report today on China lending help to 1MDB raises red flags.

"The report by Financial Times is truly troubling as it appears to confirm the information I received a few months ago," he said in a statement today.

The report said China will assist 1MDB in making repayments in its US$6.5 billion dispute with Abu Dhabi-based International Petroleum Investment Company (IPIC).

It added the deal may involve Putrajaya offering assets as a swap.

Rafizi noted that the government was previously questioned on how it planned to resolve the multi-billion dollar dispute with IPIC but no answer was forthcoming.

He said that there were only a handful of GLCs that were big enough to be traded in exchange for China to pay off debts for 1MDB.

"I urge Prime Minister Najib Abdul Razak to state if the financial assistance from China will cause a major asset such as a GLC to be offered as part of a deal with China," he said.

In an immediate reaction, Second Finance Minister Johari Abdul Ghani told Malaysiakini that he is unaware if China is being approached over the matter.

While 1MDB CEO Arul Kanda Kandasamy asked that his statement to Financial Times, declining to comment further be referred to.