Should strategic Malaysian assets be sold to a foreign power (China)?

Former International Trade and Industry Minister Tan Sri Rafidah Aziz claims that 1MDB does not contributes to the economy

State-owned investment firm 1Malaysia Development Berhad (1MDB) did not contributed to the Malaysia’s economic growth despite its billions of investments announced claims Former International Trade and Industry Minister Tan Sri Rafidah Aziz where she advised Putrajaya to  facilitate business instead focusing on the state investment firm.

The Former International Trade and Industry Minister stressed out on her far right views where the government should not be involved in business but instead facilitate private sector growth.

"The government should be facilitating business... not to be involved in business. The private sector should be assisted to continue as the key drivers of the economy. 1MDB, for all the billions, has not input into the economic growth of the country. Every effort must be made to bring back confidence and trust in economic and social governance," Rafidah stated.

In Malaysia Critique’s point of view, Tan Sri Rafidah Aziz’s statement is just one person point of view emphasizing their right winged allegiance.

Rafidah also stated that a “cash is king” culture should not take place as it results in "greed, dishonesty, corruption, and disregard for rule of law, bribery and corruption". Malaysia Critique thinks Rafidah’s 2^nd statement which sounded like left winged contradicts with her 1^st as in far right politics “cash is king”. Well it’s up to the readers to decide which to agree upon Rafidah’s right or left wing view.

Prime Minister Dato Seri Najib Razak humbly defends media attacks on State-owned investment firm 1Malaysia Development Berhad (1MDB) by explaining to the public that it was nothing more than just a war of perception

1Malaysia Development Berhad’s (1MDB) contributions to the people have been overshadowed by the negative perceptions created by social media claim Prime Minister Najib Razak. The prime minister claimed that 1MDB had sponsored over 3000 people performing haj pilgrimage and helped poor fisherman and school-going children but was left unnoticed.

He stressed out that negative perception on social media had even forced Lembaga Tabung Haji (LTH) to sell off the Tun Razak Exchange TRX land purchased from 1MDB. “It was said that Tabung Haji’s deposit was to save 1MDB. It was slander that spread far and wide in a blink of an eye,” he said in Bahasa Malaysia. “But after time passed, the reality proved otherwise. The truth was that Tabung Haji was making an investment.” Claimed the prime minister.

The prime minister has confidently trying to convince that 1MDB is in no way at all in trouble as have complete faith in the president Arul Kanda Kandasamy. Najib convinced the public with a public statement issuing that 1MDB woes is simply solvable “It is now clearer, the solution is there, it is still not lost. The assets are there. A company from China is buying (the asset) at RM17 billion. It can be solved,”

"So if we understand all this, we will not be carried away. Because, they (the opposition) want to fight us through the war of perception. “If we present facts, they will lose. If we use logic, they will lose. If we use rational, they will lose. They do not fight using facts, they use lies,” said Najib at the National Undergraduates Leadership Conference in Kuala Lumpur. Malaysia Critique totally agreed on the fight with facts and logic part so we should urge the government to be more transparent and disclose all information so we could all get the right facts.

1Malaysia Development Berhad (1MDB) President and Executive Director Arul Kanda Kandasamy giving a public announcement on agreeing to sell a 60% stake on Bandar Malaysia Sdn Bhd as part of a rationalization plan.

Bandar Malaysia Sdn Bhd equity would be sold to a newly formed consortium IWH-CREC Sdn Bhd a joined venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation (M) Sdn Bhd in a 60:40 ratio said 1MDB.

The consortium valued Bandar Malaysia at RM12.35 billion which was higher compared to the value estimated of RM11.5 billion by 1MDB president Arul Kanda Kandasamy. The share sell was seen as a win by Arul as the consortium generously valued it more than his own valuation.

Tan Sri Lim Kang Hoo, director and vice chairman of IWH stated that they had aggressively bided for Bandar Malaysia due to its strategic position where it would be directly connected to Iskandar Malaysia through a high speed rail.

CREC General Manager Yao Gyuiqing stated that the company were interested in involvement in the consortium due to confidence in the Malaysian economy, strength of leadership and the uniqueness of Bandar Malaysia. “CREC sees our investment in Malaysia as a major role in our global portfolio”

Kluang MP Liew Chin Tong stating dissatisfaction over 1MDB asset sales

Kluang MP Liew Chin Tong argues if the current 1MDB asset sales to china is of national interest as in his argument he strictly pointed out that sale of strategic asset could compromise Malaysia’s long-held neutrality strategic position.

2015 saw the intensification of US-China competition in the Southeast Asia region. Malaysia is being courted by the US and China, as it has hitherto not taken sides in an obvious manner. Since the 1970s, Malaysia has been the key leader championing South-East Asian neutrality. By now, it is clear that Prime Minister Najib Abdul Razak’s government is cashing in on Malaysia’s unique bargaining position with both countries. On one hand, Najib is committing Malaysia to the controversial US-initiated Trans-Pacific Partnership Agreement (TPPA). On the other hand, a number of recent deals with China’s interests risk compromising Malaysia’s strategic position. These deals with China’s government-linked businesses often backed by Chinese government loans which are common in Africa, or in Laos and Cambodia.

With the recent takeover of 1MDB power assets held through Edra by China General Nuclear Power Corp (CGN Group) for RM9.83 billion in cash along with unspecified amount of debt, the MP argued that sale of Bandar Malaysia to China Railway Engineering Corporation Sdn Bhd is giving away too much influence on the Malaysian economy to a foreign power. It is also predicted that Kuala Lumpur-Singapore High Speed Rail (HSR) project would also be awarded to a China-led consortium.

The ultimate question by the MP is, should Malaysia sell strategic businesses to China in exchange of a bailout for 1MDB? Will Malaysia’s long-held posturing be compromised?

Malaysia Critique thinks that the deal goes two sided, yes China would have more influence over the Malaysian economy but at the same time the stakes held by China indirectly turned China into a guardian of the Malaysian economy as a recession in the economy would affect their interest negatively therefore China would be require to forever import more from Malaysia as their interest in the country would give them indirect responsibility in safeguarding the Malaysian economy.