It would not be fair to blame the high cost of infrastructure projects under China's Belt and Road Initiative (BRI) solely on the Chinese parties involved, Deputy International Trade and Industry Minister Ong Kian Ming said.
He told a BRI forum in Kuala Lumpur tonight that this was because such mega-projects were approved by the respective sovereign governments.
"The Chinese government is also not in a position to control all the negotiations made by all the companies involved in BRI projects.
Ong said this when referring to the debt trap concern raised by several participating countries in particular Pakistan, Laos and Maldives involving mega-infrastructure projects proposed under the BRI.
The concern is over what is termed as “debt-trap diplomacy” with China offering cheap loans to foreign countries to fund mega-projects under the BRI initiative also known as the “One Belt, One Road” programme.
In Malaysia, the nine-month-old Pakatan Harapan government has cancelled a major gas pipeline project and is currently reviewing the East Coast Rail Link (ECRL) project. Both are linked to the BRI.
"The lesson from past BRI projects is that there is a need for recipient countries to strengthen their evaluation and institutional frameworks when approving any large infrastructure projects," said Ong.
"For that matter, the foundation of any successful project is good governance and a transparent procurement process," he added.
The deputy minister said the debt trap concerns will be addressed during the second BRI summit that will be held in Beijing next month with China expected to put forward a new narrative.
"As we approach the second Belt and Road Summit in Beijing, what can we expect from the BRI 2.0?" asked the Serdang MP.
Ong outlined the need to focus on better governance to rein in corruption, a commitment to environmental sustainability and promoting inclusivity.
"Secondly, the BRI is likely to see a diversification of the Chinese supply chain. As a result of global expansion, the high operational costs in China and the US-China trade war, Chinese companies are more aware of the need to have alternative manufacturing lines around the globe.
"Countries in the region, including Malaysia, may be the recipient of such investments," opined Ong.
"Thirdly, the BRI will also indirectly create opportunities for non-Chinese companies to invest and enter the Chinese market," he said.
He also reiterated Malaysia's stand to continue to support the BRI.
"I would like to assert that Malaysia continues to be supportive of the BRI and Chinese investments in Malaysia.
"The review of the ECRL is due its cost and the lack of transparency in negotiations by the previous government.
"Prime Minister Dr Mahathir Mohamad has maintained that the ECRL will continue as long as the cost of the ECRL is within the government’s financial capabilities.
“While a final decision has yet to be announced, we note that China has already offered to cut construction costs by as much as half," said Ong. - Mkini
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