China factor: While Malaysia runs a trade surplus with China, with total commerce of US96.3bil last year, Dr Mahathir has repeatedly expressed concerns that Malaysia has borrowed money from China that it could not repay and spent it on unnecessary infrastructure.
KUALA LUMPUR: Malaysian Prime Minister Tun Dr Mahathir Mohamad’s vigorous questioning of deals involving foreign money helped him pull off a surprise election win in May. Yet even as his stance continues to play well at home, the economic risks are rising.
Seemingly targeted at China, Dr Mahathir’s rhetoric has left investors uneasy over the future of some big-ticket projects, including a housing development in the south of the country. At the same time as warning against a “new version of colonialism,” however, the 93-year-old leader has also said he’s open to investment that benefits local companies and workers.
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