AGAINST all odds, the stunning defeat of a kleptocrat government led by a people’s movement surprised not only the people themselves, but also those foreign parties to the lopsided contracts in infrastructure projects.

No foreign party should enter a contract knowing well the terms are tattered with corrupt elements and outrageously disfavour the local party. Unless of course there is total disregard for the maxim, guilty by association.

Since assuming office as prime minister, Dr Mahathir Mohamad’s every word and action has been closely scrutinised by foreign government leaders, especially Singapore, China, US and Asean nations, to get an early glimpse of the impending change in foreign policy and the direction of economic rebalancing. Had our foreign minister been appointed earlier, it might have quelled misunderstandings and unwelcome opinions that our local politics was sent across the Causeway.

As much as Singaporeans see the continuous water flow across the Causeway as a national security issue, Malaysians see bad deals made by the previous government, if allowed to proceed unchecked, has potential to destroy our country from without.

But rest assured that Malaysians are pacifists and are reasonable. One should not read too much into what was reported, especially the statement about the people of Singapore and Malaysia being tired of the same government.

After all, what was said, after a barrage of disconnected questions, came from a man with so much to do in double quick time in order to save the nation. In all these perceived insinuations and undertones, diplomacy should and will prevail.

Malaysians at large fully endorse Dr Mahathir’s call for renegotiation of the lopsided contracts in the infrastructure projects. Similarly the people also endorse Finance Minister Lim Guan Eng’s assertion that the lopsided water contract would be honoured, at the same time asking our southern neighbour not to adopt the attitude of ‘beggar thy neighbour’.

At a time when a war of words fought between the two largest economies has escalated to trade wars fought with tariffs, Asean countries should take heed of the wisdom propagated by the famed Scottish philosopher and economist, David Hume, to ‘prosper thy neighbour’ in order to seek a collective prosperity of nations in the region. A separated identical twin has shared destiny in many ways. One should not think of the other as competitor, or even worse, to beggar even more the one in financial quagmire.

Malaysia and Singapore may share the same history and culture. But the one-upmanship attitude that is distinctive among Singaporeans is something we would rather not share. The siege mentality has to be discarded as that too we do not share. Imposing our politics is our least concern, but synergistically prospering with one another is supreme.

Malaysia also hopes China will share the spirit of ‘prosper thy neighbour’ with us. Dr Mahathir has often mentioned that he is in favour of China’s Belt and Road Initiative. Like many Asian countries, Malaysia sees our northern neighbour as an inspiration for success and rapid rise to be the second largest economic power over the last two decades. We see President Xi Jinping as a principled leader exerting his utmost to stem corruption in his country.

Malaysians are wonderstruck as to why and how China’s state-owned corporations got involved in notorious infrastructure and construction contracts with our state-owned corporations. It is now quite evident that those contracts, in particular the ECRL, TRX and the pipeline projects have been lopsided and the terms outrageous to Malaysia.

Though yet to be legally established, prevailing popular opinion is that these lopsided contracts are tainted with kickbacks, corruption conspiracy, and money laundering. Financially the sum involved is humongous.

Malaysia’s unfortunate case with China’s tainted stated-owned corporations is not the exception. Cases of corruption involving China’s state-owned corporations have been reported over the last decade. In 2009 the World Bank imposed debarment to China Communications Construction Company Ltd (CCCC) for fraud in Philippines road construction projects. CCCC’s subsidiary companies were also involved in bribery and corruption allegations in Cayman Islands, Jamaica, Bangladesh, and Uganda. In 2016 the World Bank banned China Harbour Engineering Company Ltd for corruption in a Zimbabwe road project.

Involvement in corruption conspiracy is only one aspect of the problem. Bankrupting the nation involved due to inability to repay loans or subsequent transferring ownership of the project due to default payment is much more serious.

It should be clear to countries involved in this saga of unfair and lopsided contracts what Malaysia wants. – July 19, 2018.

* Captain Dr Wong Ang Peng is a researcher with an interest in economics, politics, and health issues. He has a burning desire to do anything within his means to promote national harmony. Captain Wong is also a member of the National Patriots Association.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.