Malaysia On Sales! All Good Things Must Go

Malaysia has lately been particularly keen to have more business dealings with China. Malaysian assets and contracts seemed to be 'on sales' and the successful buyer or service provider would inevitably be companies from mainland China. We can see several huge assets and contracts of Malaysia put 'on sales' and won by the mainland Chinese:

1.  Energy Assets- 

• 1Malaysia Development Berhad (1MDB), the money laundering tainted and debt laden creation of Malaysian prime minister Najib Razak (aka MO1) sold a collection of energy assets to a Chinese state-owned firm, China General Nuclear Power Corporation (CGNP) for USD2.3 billion (RM9.8 billion). Energy assets involves national security and any abuse of the assets by the mainland Chinese will pose national security concerns to Malaysia, but that was none of MO1's concern. 
• MO1 was more interested in getting money to service 1MDB's debts which had been raised to benefit him personally in the first place.
• There would have been racial issues should these assets be sold to Malaysians with Chinese ethnicity. Malaysian government dominated by MO1's party, United Malay National Organisation (UMNO) is known for well-planned discrimination against non-Malay and even non-UMNO Malay communities.
• MO1 and his UMNO of course did not have an issue with mainland Chinese CGNP owning 100% equity and operating the energy assets. It was unprecedented in Malaysian history that a foreign entity was allowed to own a majority stake in a power asset let alone 100% ownership.

2.  East Coast Rail Project-

• This rail project has been confirmed to be awarded to Chinese state company, China Communications Construction Company (CCCC). Unsurprisingly, it was deemed unnecessary for open tender despite the size of the project.
• The actual cost of this rail project was stated by CCCC at RM27 billion. It was, however, to be inflated to RM60 billion (but subsequently repriced at RM55 billion after public outcry)  to siphon RM28-33 billion out of Malaysian government treasury.
• The additional RM25-30 billion was to used to pay MO1's personal companies managed by Jho Low and repay debts of 1MDB. CCCC would benefit from the remaining RM3 billion for its 'cooperation'.
• MO1 was so happy with this deal that he called the mainland Chinese 'true friend and strategic partner'. One can only wonder why?

3.  High-Speed Rail (HSR) between Singapore and Bandar Malaysia (Kuala Lumpur)

• Malaysian and Singaporean governments agreed to build a HSR between Singapore and Kuala Lumpur. The portion of HSR on Malaysian soil will be ultimately be built by, unsurprisingly, a Chinese company.
• The cost was announced by a Malaysian minister to be RM60-65 billion. It was not clear if this was pre or post inflated cost. A source has speculated that the final cost will likely to be RM180 billion. Any inflated cost will of course be channelled to benefit MO1.
• The last stop of HSR in Malaysia will be none other than Bandar Malaysia outside of Kuala Lumpur city centre. Logically, it should be KL Sentral- the transportation hub of Kuala Lumpur with train, light rail, mass-rapid transit, and bus services as opposed to a non-existent Bandar Malaysia.

4. Bandar Malaysia

• Bandar Malaysia is to be located at the previously Malaysian air force base in Sungai Besi, nearby Kuala Lumpur city. The land was given to 1MDB at a minimal cost by Malaysian government.
• In an attempt to dig itself out of heavy debt load, 1MDB subsequently sold Bandar Malaysia to a consortium led by China Railway Engineering Corporation Sdn Bhd (CREC) and Johor-based Iskandar Waterfront Holdings for RM7.4 billion, which was 40% below its market value of RM12.4 billion. CREC will also likely to be the company to construct the HSR between Bandar Malaysia and Singapore.
• It has been circulating in UMNO that China's purchase of the non-existent Bandar Malaysia was on the condition that they would get to build and manage Malacca Gateway the way that the Chinese wants it. No one in UMNO dared to speak against MO1 though.

5.  Malacca Gateway

• Malacca Gateway is a project spearheaded by Powerchina International and a Malaysian entity, KAJ Development to reclaim three islands off Malacca and develop Pulau Melaka as a maritime centre in the Strait of Malacca. Powerchina International is prepared to plough USD10 billion into this development.
• Strait of Malacca is the main shipping channel between the Indian Ocean and the Pacific Ocean, linking major Asian economies such as China, Japan, South Korea and India all the way to Middle East and Africa.
• It is undeniable that Chinese occupation and control of the Strait of Malacca's mid-point raises several concerns, including Chinese military influence over this critically important shipping channel between Asia, Middle East and Africa. None of these were of any concern to the Malaysian government helmed by MO1.

Many in Malaysia thought China had the open hand and was the winning party of these transactions. They have underestimated MO1. China perhaps would gain some benefits in kind in particular from Malacca Gateway. Money wise, MO1 was the real big winner to the tune of possibly RM150 billion from the 5 projects. The mainland Chinese may be shrewd but MO1 has a well known reputation to out-maneuver other. Should there be an Olympic gold medal for world-class skills in manipulation, it would be won by MO1 hands down. You will recall from my previous posting on how MO1 is truly the world champion:

"Najib made Swiss private bank, BSI bank with 143 years of history, came to its knees by convincing its staff in Singapore to help his 1MDB 'donation' course. He was reported to turn a decision of the justice minister of his neighbouring country by giving 'donation'- monetary pressure. Several Hollywood celebrities, eg Leonardo Dicaprio and Robert DeNiro, have been shamed by their connection to Najib and his 1MDB team. Najib's 1MDB team is under investigation for money laundering, corruption and other criminal charges in the US, Switzerland, Singapore, United Arab Emirates, Luxembourg, the UK, Australia and Hong Kong. Najib is linked to criminal investigations in at least 4 continents of the world. You can imagine how he has made his presence felt globally. Malaysian prime minister, Najib is probably the most criminally implicated leader of a country in the modern history."

"Updates: Another Swiss bank, Falcon Private Bank's Singapore branch has since ceased operating because of 1MDB. Singaporean banks, DBS and UOB were also fined for breaches in anti-money laundering law pertaining to Najib's transactions. British owned Coutts Bank, popularly known in the UK as ‘The Queen’s Bank’, with 325 years of history, was reported to have been involved in the 1MDB affair. It is likely to receive regulatory sanctions for its role in the 1MDB deals soon. As you can see whether Americans, Arabs, Australians, English, Singaporeans or Swiss, they could not escape Najib's charm. No one could resist Najib. Najib is the one and the only world champion of its kind."

Malaysia On Sales!

MO1 will the true winner of all these transactions. Malaysians do not have to worry about their prime minster, MO1. If you looked at MO1's track record, China might just be a conduit, used by MO1, that would at some point take the blame and shame.