Retired brigadier-general Mohd Arshad Raji has expressed concern over the influx of investment from China, warning that it could lead to racial imbalance in Malaysia.

He also feared that the Chinese in Malaysia risked losing their “Malaysian-ness” and ultimately be absorbed by those from mainland China, which has adopted the communist ideology.

"The local Chinese are not the same with those from mainland China. I can even feel that the people in Hong Kong don't like (China's Chinese), their culture is different," he added.

"With the influx of foreigners who own properties in Malaysia and live here, will it not cause imbalance to the country's racial profile in time?

"What is the guarantee that the racial imbalance, which may happen, will not impact national security? This is the question asked by (armed forces) veterans,” he told a press conference in Kuala Lumpur.

Though he did not specifically name China, Mohd Arshad cited several projects which involved China companies.

These included the development of Malacca Port and Kuantan Port, Forest City in Johor and the Tun Razak Exchange.

Mohd Arshad said the government should not be eager in selling the country's properties to foreign companies, especially those from a country which was once an ally of Parti Komunis Malaya (PKM), which the veterans had fought against.

"Will we feel safe and confident of the cooperation with the relevant foreign country that it will bring good returns for our country instead of posing a security threat?" he asked.

With the expansion project involving ports in both Malacca and Kuantan, he questioned if this would accelerate the powerful countries fighting for the control of South China Sea and Straits of Malacca.

"Who would bear the cost for all these mega projects ? We want to know the terms and conditions attached to the loan and repayment, would it affect the people?" he asked.

He also questioned if the security forces were roped in to discuss the implication from the security perspective before.

He also criticised the government for selling off Sungai Besi Air Force Base, which will be developed as TRX project.

Mohd Arshad also questioned if the China government-owned companies hired former army personnel as their workers.

"I was told the workers are army guys, the People's Liberation Army (PLA). I believe these companies (who bring them in) are the government's company. I was told about it and I have to verify," he said.

On another issue, he praised Malaysia for standing firm against North Korea in its investigation into the death of Kim Jong-nam, which led to the diplomatic fallout between both countries.

"North Korea is another brand of communist. To me, they appeared to be violent," he said.

"I think our government has taken the right action by evicting (envoy) Kang Chol," he added.

He said that the actions of North Korea and Malaysia, banning each other's citizens from leaving their countries should not be read as a sign of calling for war against each other.

The matter was too trivial for both countries to call for war against each other, he said.

"In this situation, I don't think the armed forces should be involved, let diplomacy work (first)," he said.

And, he said, there is no way Malaysia could rescue its citizens out of North Korea.

"How to rescue them, send a commando ? No, there is no way you can do it. You are putting your own people at risk," he said.

He noted Malaysia could not resolve this on its own and United Nation and China could be the option for a resolution now.

"If China and North Korea are very closely allied, why not (we seek help from China)," he said.