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Exclusive | Nothing to fear from China, says Malaysia’s Mahathir Mohamad, but lopsided deals must end

Prime minister says Malaysia ‘can’t quarrel with such a big market’ – and will welcome foreign investment that adds jobs, transfers skills and broadens the global market for Malaysian products

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Malaysian Prime Minister Mahathir Mohamad: ‘I have always regarded China as a good neighbour’. Photo: SCMP Pictures
Malaysian Prime Minister ­Mahathir Mohamad wants to strengthen “good relations” with Beijing, but is urging Chinese ­investors to refrain from relying only on material, capital and ­labour from back home and ­denying his country any real benefits.

The 92-year-old leader’s ­setting out of the terms for better relations in an exclusive interview with the South China Morning Post came in the wake of widespread unease that his defeated predecessor, Najib Razak, had been too lax in approving ­Chinese-backed projects that ­offered little value to local players.

Mahathir’s comments were the most extensive yet on Asia’s biggest economy after his Pakatan Harapan coalition staged a stunning victory in a general election in May, dislodging the long-ruling Barisan Nasional bloc.

WATCH: Malaysian Prime Minister Mahathir says he is not anti-China

Pundits have been parsing Mahathir’s public comments for a clearer view of his China policy after a heated election campaign in which he assailed Najib for “selling off” the country to China in exchange for help in settling debts linked to the multibillion-dollar 1MDB ­scandal.
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Najib has strenuously fought off that insinuation and denies links to the scandal – for which he is currently being investigated and is likely to be arraigned.

Najib is widely viewed by foreign policy observers as having brought his country closer to China during the last few years of his nine-year premiership.

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Under his leadership, ­Malaysia became one of the ­largest beneficiaries of investments linked to Beijing’s “Belt and Road Initiative”, securing some US$34.2 billion worth of deals as China seeks to open up international trade along a New Silk Road.
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