MALAYSIA’S former deputy prime minister and finance minister Anwar Ibrahim said his country rejected Chinese-backed infrastructure projects because of the potential for corruption and questions about whether Malaysia can afford them.
Speaking at a business conference in Manila, Mr. Anwar, asked to comment on Prime Minister Mahathir Mohamad’s cancellation of the East Coast Rail Link, which is Chinese backed, said the prime minister found the deal “somewhat dubious, and prone to corruption. Not by China per se, but on the contract arrangement between the company and Malaysia.”
“The railway project was 55 billion ringgit, and we can’t afford it now,” he added.
Mr. Mahathir also cancelled a Chinese-backed Sabah gas pipeline project.
Pressed for lessons for the Philippines, which has its own infrastructure dealings with China, Mr. Anwar said: “Contracts, arrangements by governments, must be transparent. Because, otherwise, those in power will make certain arrangements that are dubious, and the next generation will have to pay the price.”
Mr. Anwar, who fell from power in the wake of trumped-up charges about his personal behavior and spent years in detention, delivered the keynote speech at the 16th International CEO Conference 2018 of the Management Association of the Philippines (MAP) at the Makati Shangri-la.
In a question-and-answer session, Mr. Anwar, currently the president of Malaysia’s People’s Justice Party, urged businesses to anticipate the impact of disruption on the welfare of their workers.
“What can I advise? I’m not a businessman. You know best… You have to have compassion. Please care for the welfare of the workers, be more compassionate… Please help your country, help your people as what I have always advised the Malaysian people,” Mr. Anwar said.
Co-presented by BusinessWorld, this year’s MAP CEO Conference was billed as “Business in the Age of Disruption,” and offered opportunities for business leaders to discuss the impact of disruption and innovation in their industries.
According to MAP, Mr. Anwar’s return to politics is “expected to shift geopolitical landscape in the region and in Malaysia’s quest for improved competitiveness and stability in the global arena.”
In his speech, Mr. Anwar said: “You cannot fool the people all the time. This is a belief that CEOs and entrepreneurs must share. You should realize that you manage people. The issue of justice is very important.”
He defined economic vibrancy as entailing “good governance and effective management.”
Mr. Ibrahim also urged the leaders of the Association of Southeast Asian Nations (ASEAN) to remain committed to the organization’s vision and resist protectionism.
On the potential for Chinese domination in the South China Sea, he added: “We can’t allow this to happen, because it would look like a jungle and not the rule of law.” — Arjay L. Balinbin

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