Malaysia’s newly-elected government has issued the suspension of three large China-backed infrastructure projects worth around $22 billion while it investigates the roots of a Chinese state loan and alleged links with Malaysia’s controversial sovereign wealth fund 1MDB.
The suspension includes the East Coast Rail Link from Malaysia’s east coast to Thailand’s southern region and two pipeline projects, reports the Financial Times.
The contractors commissioned for the project – China Communication Construction Company and China Petroleum Pipeline Bureau – received the instructions to suspend operations from Malaysia’s government-run Malaysia Rail Link, which cited excessive costs among its reasons.
While construction is halted the Chinese financing of the project will be investigated for suspicious connections with 1MDB, which has been a focus of the current administration’s criticism of former Prime Minister Najib Rajak, who has been detained on suspicion of corruption.
You must log in to post a comment.