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Malaysia is just weeding out 'dubious' projects: Anwar

The premier-in-waiting reassures foreign investors that recent moves by M'sia not a snub to China

Hong Kong

ANWAR Ibrahim, in line to become Malaysia's next prime minister, sought to reassure foreign investors concerned about recent decisions to scrap several high-profile infrastructure projects in a bid to reduce debt.

He said the government's review is limited to specific "dubious" projects approved under the previous administration and shouldn't be interpreted as a snub to China.

He's expected to replace 93-year-old Mahathir Mohamad as prime minister in about a year or two.

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"It's confined to these companies," Mr Anwar said in an interview with Bloomberg Television in Hong Kong, where he attended an investment forum. "Mahathir took the initiative, visiting China, assuring them that the bilateral relations, trade, investments with China must and will continue."

Since his surprise election victory in May, Dr Mahathir has cancelled or suspended several major projects backed by Chinese interests, including the East Coast Rail Link and three pipeline projects.

He also delayed work on a proposed bullet train linking Singapore and Kuala Lumpur, which had also attracted interest from Chinese contractors, and questioned whether foreigners should be able to buy property in a US$100 billion project backed by a Chinese company.

"Mahathir represents the sentiments in the country that firstly, we cannot continue with these mammoth projects at a time when the economy is struggling," said Mr Anwar.

He added that the government is focusing on transparency and debt reduction, and overall, "the economic fundamentals are strong". "Yes, it is weak compared to the position that we had in the last two years, but it's in no way close to being a weak, fragile economy," he said.

Mr Anwar, 71, is the official leader of the four-party Pakatan Harapan ruling coalition that backs Dr Mahathir.

Jailed for a sodomy conviction widely seen as political, Mr Anwar was granted a full pardon following an election that ended the six-decade rule of former prime minister Najib Razak's United Malays National Organisation (Umno).

Dr Mahathir has launched investigations to recover potentially US$4.5 billion lost due to the mismanagement of state fund 1Malaysia Development Berhad (1MDB) by Mr Najib, who denies wrongdoing. Mr Anwar said Malaysia can't recoup all the losses, but believed they could get "most" of the money back.

Dr Mahathir, once a bitter rival of Mr Anwar, had pledged during the election campaign to stand aside for him once he was pardoned. The timeframe for the transition remains unclear, with reports suggesting rivals within the party were positioning to outmanoeuvre Mr Anwar.

On Wednesday, Mr Anwar's party announced that he will contest a by-election in Port Dickson, Negeri Sembilan, paving the way for his return to Malaysian politics. He also wants to work on reforms in the legislative body to give Dr Mahathir space to run the government.

Mr Anwar said Dr Mahathir was more suited to being prime minister than him at present, as he was better at making tough decisions. "This sort of teamwork will be essential for him to continue getting the latitude and space without any encumbrances, and for me to assume the position much later," said Mr Anwar.

"We've accepted the fact that the country must be saved, that the country takes precedence. Credit given to him: He's doing what he promised prior to the elections, and he's doing it remarkably well." BLOOMBERG