DR Mahathir Mohamad’s move to put under review some China-backed projects does not mean the prime minister is being hostile towards Beijing.

In an exclusive interview with the South China Morning Post, he said Malaysia is keen to boost good ties with China, but sketchy deals will not be allowed under his leadership, and the country must not be denied “real benefits”.

He said to this end, Chinese firms investing in Malaysia must not rely on materials, capital and labour from back home.

“When it involves giving contracts to China, borrowing huge sums of money from China, and the contract goes to China, and China contractors prefer to use their own workers from China, use everything imported from China, even the payment is not made here, it’s made in China… that kind of contract is not something that I welcome.”

Dr Mahathir and his Pakatan Harapan pact have slammed former prime minister Najib Razak for “selling off” the country to China, in exchange for help in repaying debts linked to the 1Malaysia Development Bhd scandal.

1MDB, which is Najib’s brainchild, is the subject of multiple investigations, both in Malaysia and abroad. The former prime minister is accused of misappropriating funds from the state investor – something he has consistently denied.

Dr Mahathir has taken aim at Najib for being lax in approving major China-backed projects seen to offer little value to local players, one of which is the RM55 billion East Coast Rail Link.

The prime minister previously said Najib had offered the project without tender to China Communications Construction Company, and that its price tag was far too steep.

He had also warned that the main contractor in ECRL might source “almost 100%” of labour and materials from China.

During Najib’s time in office, Malaysia became one of the biggest beneficiaries of investments linked to Beijing’s Belt and Road Initiative (BRI), securing US$34.2 billion (RM137 billion) worth of deals.

Forest City, the US$100 billion mixed development project being constructed off the Johor coast, has also not been spared Dr Mahathir’s criticism.

He believes that the housing units in the project, which is a joint venture between the Johor ruler and Chinese property developer Country Garden Holdings, are beyond Malaysians’ reach, and will likely be snapped up by wealthy Chinese nationals.

“We don’t want to have whole cities built in Malaysia (by developers who then bring in) foreigners to stay there. That is what I am against.

“I am against it, even if (the investment is) from India or from Arab countries or from Europe. Foreign immigrants in huge numbers, nobody will welcome, certainly not in Malaysia.”

Dr Mahathir highlighted that Malaysia and China had formed a “very good relationship” during his first turn as prime minister.

“We sometimes become a spokesman for China, because everywhere I go, people ask me, ‘What do you think about China? Aren’t you afraid?’.

“I say, ‘There’s nothing to be afraid of’. We have been neighbours for 2,000 years.

“I have always regarded China as a good neighbour, and also as a very big market for whatever it is that we produce.

“Malaysia is a trading nation. We need markets, so we can’t quarrel with such a big market.”

Driving his point that Putrajaya wants to bolster good relations with Beijing, Dr Mahathir cited as an example the visit by Chinese tycoon Jack Ma yesterday.

He said he welcomed the Alibaba Group executive chairman’s ideas on technology transfers, among others.

The prime minister also reiterated his support for Chinese President Xi Jinping’s flagship BRI.

He retold an anecdote of how he had written to Xi, suggesting that “super trains”, which could ply the Asia-Europe route and complement sea trade, be built.

He said the inclusion of a sea element to BRI would be positive, adding that he is confident it is “not (Xi’s) intention to prevent other ships from passing through the Strait of Malacca and the South China Sea”. – June 19, 2018.