After 1MDB deal, Rafizi says Chinese firms to win KL-Singapore fast train project

The proposed alignment of the high speed rail between Kuala Lumpur and Singapore. Chinese firms are poised to win the project following its deal with 1MDB, says PKR's Rafizi Ramli. – December 31, 2015.

PKR secretary-general Rafizi Ramli today predicted that the RM47 billion high speed rail project between Kuala Lumpur and Singapore would be awarded to companies linked with the government of China.

The Pandan MP said he felt the government under Prime Minister Najib Razak was bound to favour the China-owned companies following their deals with 1Malaysia Development Bhd (1MDB).

1MDB today agreed to sell 60% of its equity‎ in Bandar Malaysia Sdn Bhd for RM7.41 billion, as part of its plan to reduce its RM45 billion debt.  ‎

The stake was sold to a consortium comprising Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation (M) Sdn Bhd (CREC), said 1MDB.

"If my guess is correct, Malaysia would soon be entering a complicated era as the stakes held by the China-owned firms are bound to complicate matters that Malaysia share a mutual interest with China, such as the nation's stand on the Spratly islands.

"The deal today (1MDB, Iskandar, CREC) only proves my earlier warning that the 1MDB scandal would drag the country along until most of its important assets sold to cover 1MDB's huge debt," he said in a statement today.

"CREC will now have 40% of the 60% stakes in Bandar Malaysia (overall 24% stakes in the entire project), which is a lucrative and strategic piece of real estate.

"Although Najib's administration will argue that 24% by the Chinese company is small, I believe CREC will have the upper hand in biddings for larger projects linked with Bandar Malaysia, which is the high speed railway system between Kuala Lumpur and Singapore worth up to US$11 billion based on the current rate exchange," he said.

He said 1MDB had sold its energy assets, Edra Global Energy Berhad to China General Nuclear Power Corp (CGN Group) despite the government's policy on foreign control of the country's power assets.

"Therefore I invite Malaysians to appreciate how lately Najib's administration had a tendency to sell or award bids to companies linked to the China government.

- TMI