- 2018-10-29
Does Malaysia question the “Belt and Road” initiative?
In Malaysia today, after the surprise of the influx of Chinese capital, questioning is more like an inescapable fate. In Malaysia’s electoral politics, with the help of opposition parties and the dilemma of small and medium-sized enterprises being squeezed by the strong Chinese capital, doubts about Chinese investment seem to gradually become mainstream voices.
According to statistics in March, Chinese companies have invested more than US$2.1 billion in real estate in Malaysia in the past three years, surpassing Singapore and becoming the largest real estate investor in Malaysia. According to figures from the Ministry of Commerce of China, in the first nine months of 2016, China's direct investment in Malaysia has exceeded US$500 million, a record high.
Malaysia is located at the strategic hub of Southeast Asia, where cultures blend with East and West, and religions live in harmony. At the same time, there are more than 7 million ethnic Chinese who are inextricably linked to China. In the context of China, Malaysia is not only an important node country on the 21st Century Maritime Silk Road, but also a bridgehead into ASEAN and the Islamic world. It plays a very important role in the construction of the 21st Century Maritime Silk Road.
However, Chinese capital is also being questioned in Malaysia. This seemingly inescapable "fate" actually has extremely profound external factors and internal logic.
In 2016, the global economic turmoil triggered a political and economic crisis in Malaysia. That year, Malaysian society was faced with multiple pressures such as falling oil prices, consumption tax restraining domestic consumption, continued devaluation of the ringgit, and the exposure of the "1MDB" scandal, making the ruling coalition led by Prime Minister Najib a crisis and struggling. In the face of a weak domestic economy, constant criticism from opposition parties, and election pressure, increasing the attraction of foreign investment has become a "life-saving straw" for the ruling party to get out of its plight.
It is against this background, coupled with the catalysis of Malaysia’s unique ethnic and political environment, it is like a far from perfect drama. The Chinese capital who stepped onto the center of the stage received applause and applause under the spotlight, and at the same time it was bound to gain. Taunt, ridicule and even question.
Although to a certain extent, Malaysia is still dominated by racial politics, in recent years, in terms of attitudes towards Chinese capital, Malaysia’s ruling party alliance-the National Front of Malaysia (referred to as Barisan Nasional), and its major party-Israel The Malay National Unity Organization (UMNO), which is dominated by visitors, basically welcomes Chinese investment in Malaysia.
In 1974, under the leadership of Tun Razak, father of the current Prime Minister Najib Najib (the second prime minister of Malaysia), Malaysia became the first country to establish diplomatic relations with Mainland China after the establishment of ASEAN. It is precisely with this kind of personal complex that "the son inherits his father's ambition", friendship with China has become the main axis throughout Najib's ruling career. At the same time, under the background that the United States is constantly exerting pressure on Najib on the 1MDB investigation, the Najib government, which has been considered to be seeking a balance between China and the United States, has naturally continued to heat up relations with China. In 2013, it was successfully upgraded to a "comprehensive strategic partnership" relationship.
It is interesting to note that when Najib was plagued by the 1MDB scandal, China was increasing its investment in Malaysia. The major assets of 1MDB-"Malaysia City" and Edra Energy's major acquisitions were naturally also This has largely eased the 1MDB debt crisis and the political pressure on Najib himself.
The voice of doubt from the opposition party is not groundless. The two political veterans joined forces to launch an attack, which obviously pushed up the pattern of the problem. Mahathir, who has been in Malaysian politics for 22 years, once again spoke out, especially in the Malay rural areas. His high-profile attack on China is not only about the interests of the party and election considerations, but also reflects the doubts of the Malaysian institutional elites about the rise of China.
While the Barisan Nasional government is trying to portray itself as a contributor to attracting Chinese funds to help the domestic weak economy, it has always targeted Najib’s opposition party coalition. Its attitude towards China’s “Belt and Road” initiative will naturally not be the same as that of the Barisan Nasional. be consistent. The opposition party criticized Najib, and naturally criticized the Chinese investment supported by Najib, and insisted that "Najib brought in Chinese capital and asked China for help to relieve himself." Najib visited China in November last year and signed 14 memorandums with China worth approximately 144 billion ringgits (approximately US$32 billion), which is the largest investment signed with a foreign country in the history of Malaysia. Unsurprisingly, as soon as this news came out, the opposition party was labelled "traitor".
Even though the political and opposition parties in Malaysia have different views on this issue, the rise of China's economy in recent years has made it difficult for Malaysia to completely deny the opportunities brought by the "Belt and Road" initiative. The Democratic Action Party, a veteran member of the opposition coalition, may be relatively sensible and calm in its criticism of Chinese capital: Unlike the Barisan Nasional government, which attracts a large number of Chinese capital to enter various projects freely, the Democratic Action Party advocates screening them and selecting capital projects carefully. To protect national interests. Liu Zhendong, director of the Political Education Bureau of the Democratic Action Party, believes that the government has the responsibility to identify and supervise foreign investment from any country, and Chinese investment is no exception.
In the process of promoting the overseas development of the “Belt and Road” initiative, the Chinese Communist Party has few direct interactions with the Malaysian opposition party, and the channels are single. This asymmetry of information makes it difficult for the Malaysian opposition party to respond directly and positively to the “Belt and Road” policy. Instead, it indirectly voices its voice through criticism and supervision of the ruling party.
However, the long-term nature of Chinese investment in Malaysia requires the Chinese government to strengthen dialogue and communication with the opposition party in an appropriate environment to deal with the uncertainty of the Malaysian political situation. In Malaysian society where non-governmental organizations and associations play an important role, establishing a dialogue mechanism with these groups can help the Chinese government reduce resistance in the process of implementing the “Belt and Road” initiative and listen to different voices from all parties to the greatest extent. Pave the way for the sustainable development of Chinese capital in Malaysia.
The "big drama" of the "Belt and Road" has been staged, and Malaysia will play an important role. However, in Malaysia, the Chinese business community’s “one call and a hundred responses” to the “Belt and Road Initiative” is in sharp contrast with the cautious attitude of other ethnic compatriots who “disappropriate”. In Malaysia, where there is still a market for racism, and the tensions in the South China Sea disputes, if the China News Agency and the Huaji political parties move too close to the Chinese capital, they will inevitably awaken the long-sleeping doubts about "loyalty to China" again and trigger the situation. The further tensions in Malaysia will affect the interests of Chinese capital in Malaysia.