Although Najib is well known for his ill-gotten gain, I strongly believe his wanting investment from China is genuine and should help improve our economy faster. I hope our new government will continue to encourage China to invest in Malaysia.  All ploliticians including our new PM Anwar should know the importance of foreign direct investment (FDI).  

In Aug 2017, Malaysian PM Najib Razak met with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation meeting in Beijing. Malaysia’s economic ties with China are not new but have been growing. Photo: Reuters

The Straits of Malacca have been a gateway for China for centuries in its quest for power. China is again seeking influence in Malaysia as it spreads its economic and military clout through South-east Asia. It is investing billions in a US$7.2 billion (S$9.8 billion) redevelopment that will see Malacca, long the haunt of Chinese traders, become a new deep sea port.

It is also providing funds for infrastructure projects down the eastern seaboard of Malaysia, key heartland areas for Prime Minister Najib Razak ahead of an election that could be held this year. New roads and bridges may help him woo ethnic Malays, but the money could come at a long-term cost.

“The closeness with China is an Achilles heel for Najib,” said Dr Mustafa Izzuddin, a fellow at the ISEAS-Yusof Ishak Institute in Singapore. “While investment coming in will balloon government coffers and boost the economy, the opposition is using the China card to criticise the government for becoming too close to China and accusing it of selling Malaysia’s sovereignty.”

China’s investment in Malaysia has risen since Mr Xi Jinping took power in 2012, with the president describing ties with Mr Najib as the “best ever”. Beijing is readying a state visit by Mr Xi to Malaysia in the coming months, according to three people with knowledge of the plans who asked not to be identified given the sensitivity of the discussions.

China has committed to import goods worth US$2 trillion from Malaysia over the next five years (a nearly eight-fold jump from 2016 imports over that period), to invest up to US$150 billion in the country and to offer 10,000 places for training in China.