Peninsular Malaysia with Strait of Malacca that handles almost half of the world's total annual seaborne trade tonnage, has a crucial role in this China's initiative.
Ever since China rolled out its OBOR initiative, many countries have received billions of dollars (loans from China) towards infrastructure development more to serve China's objective under the pretext of trade.
What will China do if a country is unable to service its loan?
Sri Lanka under such a situation, hands over the strategic Hambantota port (refer to the OBOR map for its location) to China on a 99-year lease in December 2017 when she failed to pay her debt. (China has learnt her Macau's and Hong Kong's lessons from the western power).
The Najib administration that loved mega projects, took the opportunity to borrow money from China to pay China to build infrastructures to serve mainly China's objectives as well as his objectives.
Projects related to OBOR committed by Najib so far include the ECRL (Rm54 billion that may finally exceed Rm100 billion), the Melaka Gateway (Rm27 billion), Kuala Linggi Port (Rm11 billion), Penang Port (Rm 5.6 billion) and Kuantan Port (Rm700 million). Yet to be committed is a proposed Carey Island project (Rm100 billion) in a China-MMC joint venture.
Other China projects and investments that are not related to OBOR are the Forest City (US$100 billion), Robotic Future City, Johor (US$3.46), Samalaju Steel Complex (US$3 billion), Land Reclamation Penang (US$540 million), Green Technology Park, Pahang (US$470 million), Methanol Plant, Sarawak (US$190 million) and The Shore, Sabah (US$130 million).
With the Singapore government is the Kuala Lumpur-Singapore High Speed Rail (Rm110 billion) which the PM Dr. Mahathir has announced its cancellation in order to reduce the federal debt that has gone beyond Rm1 trillion.
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