Mahathir wants to see Kuantan's 'Great Wall of China' come down

Prime Minister Dr Mahathir Mohamad would like to see the walls surrounding the Malaysia-China Kuantan Industrial Park (MCKIP) go down - both literally and figuratively.

Malaysiakini had in a special report last year highlighted the approximately nine-kilometre long wall surrounding the industrial complex, which locals have described as Kuantan's "Great Wall of China" around a "closed city".

Mahathir, in his first interview after returning from China, said he is seeking to reassert Malaysian authority over the area and had raised the matter with Beijing.

"I explained to the Chinese government that as much as we will obey their rules, their laws and their practices in China, we expect them to obey our laws and our practices in Malaysia, to which they never said no.

"We will have to see that this development conforms to our rules and regulations," he told Malaysiakini in an interview at the Perdana Leadership Foundation in Putrajaya.

Chinese workers had told Malaysiakini that there was a strict prohibition on them from leaving the confines of the wall and inside, the workers are divided into quarters according to the Chinese province that they originated from.

MCKIP has said the perimeter wall does not cover the entire MCKIP site but is only limited to the Alliance Steel (M) Sdn Bhd complex.

Local elected representatives have also complained that they were not allowed inside.

"An industrial park is not a foreign country, it should be under the laws of Malaysia but cutting out entry to local officials is not the right thing to do.

"Nobody has ever done that. You build a wall around an industrial park and you don't even allow Malaysians to go in.

"This is not the practice we use. We have hundreds of industrial park and they are all under Malaysian law.

"So we need to take down walls and all that because these are wrong in our country," said Mahathir.

'Malaysian law must stand across the whole country'

Asked if he meant literally or figuratively by "taking down walls", Mahathir replied: "Literally, and figuratively".

"You see, because the industrial park is built under Malaysian law and we have to apply our law within the industrial park.

"Supposed a crime is committed there, that is our responsibility. It cannot be the responsibility of the people who own the park," he said.

Mahathir returned from China on Tuesday as he sought to discuss with Beijing on the review of several mega projects in Malaysia which were being financed by China.

Mahathir had repeatedly accused his predecessor Najib Abdul Razak of arbitrarily selling land to China in the name of foreign investment.

The prime minister stressed that foreign direct investment should see technology transfer to Malaysia as well as the hiring of Malaysians instead of giving land to Chinese companies to develop.

Officially launched on Feb 5, 2013, MCKIP is 49 percent owned by Guangxi Beibu Gulf International Port Group Co Ltd, a China company owned by the Guangxi Autonomous Region government, and the remaining 51 percent is owned by a Malaysian consortium - Kuantan Pahang Holding Sdn Bhd.

Kuantan Pahang Holding Sdn Bhd is a public-private partnership comprising IJM Land Bhd (40 percent), Sime Darby Property Bhd (30 percent) and the Pahang government through Perbadanan Setiausaha Kerajaan Pahang and Pahang State Development Corporation (30 percent).

The grand opening was attended by former prime minister Najib Abdul Razak and the then chairperson of the National Committee of the Chinese People’s Political Consultative Conference, Jia Qinglin.

Divided into three phases, the current 1,219-acre development will be followed by another 1,000 acres and 800 acres in Phase Two and Phase Three, respectively.

A large part of the first phase, or 710 acres, has been sold to Alliance Steel (M) Sdn Bhd, a joint-venture between two China entities - Guangxi Beibu Gulf Port International Group Co Ltd and Guangxi ShengLong Metallurgical Co Ltd - according to a Pahang state assembly written reply dated Sept 14.

The reply said that Alliance Steel, the first China company to invest in MCKIP, is building a modern integrated steel plant, which is already 50 percent completed and is expected to commence operations by the year-end.

The Pahang government also revealed that a China company specialising in car batteries has promised to invest in Phase Three of MCKIP. Media reports also say another China company will be investing in the industrial park to construct an aluminium factory.

MCKIP was the first project to be granted "National Industrial Park" status and has been touted as a booster for local economic growth that will create thousands of new jobs for the Kuantan folk. -Mkini