POLITICAL instability and the pandemic have delayed China’s Belt and Road projects in Malaysia, experts said.

The East Coast Railway Link (ECRL) in particular had experienced many stops and starts due to the Pakatan Harapan government’s hesitancy in going ahead with the project, they said.

These delays could have cost Malaysia other projects under the Belt and Road initiative, they added.

Ong Tee Keat, chairman of the Centre for New Inclusive Asia, a Malaysia-based think tank, said China had used the pandemic to advance soft diplomacy by way of vaccines.

This means Belt and Road projects were no longer confined to infrastructure but other developments that were advantageous to China, who along with Malaysia, is signatory to the Regional Comprehensive Economic Partnership (RCEP).

Ong, who is also the chairman of the China Silk Road Chamber of Commerce Malaysia, said the 2018 change of government also derailed the projects.

He said Malaysia needed to show sincerity in its cooperation with China.

Barisan Nasional commission the ECRL, which spans 665km and connects the East Coast states of Kelantan, Terengganu, and Pahang to the Klang Valley.

The US$20 (RM87) billion project was cancelled by Dr Mahathir Mohamad in 2019 but was revived in 2020 by Perikatan Nasional.

It is expected to be completed in 2026.

ECRL pointless without connectivity to Singapore

Belt and Road research centre chairman Cheah See Kian said the ECRL was only 27% completed.

“Can we still trust the official announcement that it will be completed in time?” Cheah asked.

“The people have lost confidence in the government.”

Cheah blamed PH for bungling the ECRL project and causing Malaysia to miss out on other Belt and Road projects.

“It was Dr Mahathir who announced that the project would be cancelled,” he said, referring to former prime minister Dr Mahathir Mohamad.

PH’s friction with China benefited other countries like Indonesia, he said.

Even the high-speed rail (HSR) project between Malaysia and Singapore, which had nothing to do with the Belt and Road project, was canned, Cheah added.

He said the HSR project should not have been cancelled in the face of the opening of the China-Laos railway connecting Kunming to Vientiane.

Over 1,000km long, the the China-Laos railway is the most ambitious Chinese project under the One Belt, One Road initiative, he said. It is part of the Trans-Asian railway network.

“The China-Thailand railway is now under construction. Malaysia is missing out on the opportunity to start talks with Singapore again,” he said.

Malaysia’s biggest problem now is indecision, Ong said.

If it can’t even decide on the HSR, it cannot handle the Trans-Asia railway, he said.

However, if the Malaysian section of the Trans-Asian railway is launched, the HSR must be revived and political instability cannot be used as an excuse, he said.

Ong said China is now turning to digital infrastructure to promote digital economy and sustainable development or ocean economy.

China’s strategy has also focused on joint vaccine development and establishing a public health mechanism as part of the Belt and Road programme. Therefore, Malaysia should seize this opportunity.

As a maritime country, Malaysia can take advantage of this and develop its aquaculture, fisheries, shipping and tourism which will benefit the country’s GDP.

Sarawak to Silicon Valley of the East

With Indonesia moving its capital to Kalimantan, Cheah said this will allow Sabah and Sarawak to foster closer ties with Jakarta to make the region the golden triangle of the new economy.

The development of Sarawak’s digital economy is also on track to meeting its Digital Economy 2018-2025 plan, Cheah said.

“The government plans to promote cloud computing, data centres and more submarine internet cables in Sarawak.

“Penang has always been known as the Silicon Valley of the East, but it will be overtaken by Sarawak soon.

“The state which is rich in oil has proven itself to be undefended, with local parties winning 76 seats in the last state election. This proves that Sarawakians want independence and control of their own economy.”

At the last elections, Gabungan Parti Sarawak (GPS) won 76 seats, PSB four, and DAP two.

In 2017, Indonesia announced that it was building a 2,428km railway system in Kalimantan, connecting Sarawak and Sabah.

When completed, the two states and Indonesia are expected to have a shared economy.

Cheah said Indonesia will become a formidable economic power in the future while Malaysia lags behind due to its political struggles.

Despite being a latecomer to the Belt and Road initiative, Indonesia has surpassed Malaysia, he said.

If Malaysia does not get its act together, it will continue to miss opportunities, he added. – April 29, 2022.