China’s capital controls start biting

Prospects look at a model of the development at the Country Gardens Forest City showroom in Johor Bahru, Malaysia February 21, 2017. Picture taken February 21, 2017. REUTERS/Edgar Su TPX IMAGES OF THE DAY

Projects with Chinese investments in Malaysia, however, are still going on smoothly. Many of these are government-to-government projects and will continue.

CHINA’s capital controls, invoked without much publicity since late last year to curb outflow of funds and to stabilise the yuan’s rate, are squeezing its investments abroad – including those in Malaysia.