Belt and Road role for Malaysia, if it overcomes suspicions of China

Malaysia’s Prime Minister Najib Razak goes into this weekend’s “Belt and Road Summit” hopeful of cementing his country’s position as a key player in the Chinese-bankrolled plan to recreate the ancient Silk Road trade route, but back home, his enthusiasm for the project might be politically costly.

In a blog post this week, Najib said Malaysia’s “strategic location” gave it an edge in the vast plan masterminded by Chinese President Xi Jinping ( 習近平 ) to ramp up trade between Asia, Europe and Africa through a network of new ports, railways and roads.

The plan covers 65 nations, about 60 per cent of the world’s population and a third of global GDP. China has budgeted US$40 billion for the project. The Asian Infrastructure Investment Bank, which began operations last year with US$100 billion in capital, is also expected to fund Belt and Road projects.

Watch: China’s Belt and Road Initiative

Malaysia, Southeast Asia’s third-largest economy, already boasts tens of billions of dollars of Chinese investment in major infrastructure projects, including new ports and a high-speed rail line. Data from the China Global Investment tracker website showed promised Chinese investments of US$17.2 billion between 2010 and June 2016. And last November, Najib returned from a state visit to China with US$34 billion worth of economic deals. The US$10 billion Melaka Gateway port, US$13 billion east coast rail line, and a US$920 million expansion of the Kuantan port are among the big ticket projects that have seen Chinese investment.

The two-day forum starting on Sunday in Beijing featuring Xi and 29 other world leaders will be vital in “ensuring Malaysia can enjoy the [Belt and Road] initiative which is poised to improve the national economy,” the Malaysian leader wrote before departing for China on Friday.

However, observers and government critics say the premier may be putting himself in a politically tight spot by appearing overenthusiastic about the project.

General elections are not due until next year, but in a late night rally on Thursday – hours before departing for China – the premier gave the clearest indication yet that he might soon call snap polls. “I want to ask you all, are we strong enough? Are we ready? Can we dissolve parliament tomorrow?” he said to tens of thousands of members of the ruling United Malay National Organisation gathered for the party’s 71st anniversary.