Malaysia Hits Brakes on China’s Corrupt Investment


On this episode of China Uncensored, Hey Malaysia, that’s some nice Chinese investment you got there. It’d be a shame if it led to massive government corruption. Welcome back to China Uncensored, I’m your host Chris Chappell. The Chinese Communist Party has a plan for
world domination. And no, it’s not mass yoga sessions. Hmm, although I think state-run media knows
how to sell it. What’s that Shelley? Oh, right, the topic. What was I talking about? Ah, right. The Communist Party’s plan for world domination. And how are they going to carry this plan
out? “The Belt and Road is how, oh oh oh oh” Yes, nothing says “innocent, peaceful development” like children singing. The Communist Party claims the Belt and Road
Initiative, also known as One Belt, One Road, is a recreation of the global trade route, the Silk Road. What it means on the ground is that Chinese
companies will come into a small country to build things like roads, bridges, or ports. The Chinese companies are providing this “service” in dozens of countries—to a tune of more
than a trillion dollars. Most of the investment is in less-developed
countries that can’t afford to build the roads, bridges, or ports on their own— so they take out a loan to pay the Chinese
companies. And that loan usually comes from a Chinese
state-owned bank. But unfortunately, it’s not all sunshine
and catchy songs. Because when you take out a loan, you have
to pay it back. And a lot of countries have been ending up deeply in debt to Chinese banks, while Chinese companies suck out the juicy
resources those countries have to offer. For example, Malaysia. For many years, Malaysia was going all in on Belt and Road investment from China. That’s thanks to Najib Razak, who was Malaysia’s prime minister for nearly
a decade. “Malaysia’s prime minister has made a habit of attending announcements of new Chinese
investments in his country. And he’s had plenty of events to attend
lately.” Wait, did you hear that? Was that just…a glitch in the matrix? But Chinese state-run media were right— Najib Razak had a lot of Chinese events to
attend. Over the past several years, Malaysia secured $34 billion dollars worth of Belt and Road infrastructure projects. So why was Najib so into Chinese investment? You’ll find out in a bit. But to the Malaysian public, it eventually seemed like the Belt and Road was turning into a noose. But then, during Malaysia’s elections this
past May, Najib was kicked out of office, and replaced by 92-year-old former prime minister Mahathir
Mohamad. That ended six decades of one-party rule in
Malaysia. And Mahathir didn’t feel the same way about the Belt and Road Initiative. “None of our people are employed as workers. None of our companies are used for designing and planning and supervising, et cetera. We gain nothing.” His criticism of investment from the Chinese
Communist Party— and his promise to halt or review Chinese
investments— was one of the factors that helped him win his surprise election victory. But there was another surprise: A politician actually made good on his word. Last week, Mahathir suspended four Chinese
linked projects worth about a total of 23 billion dollars. That’s already more than two-thirds of all the current Belt and Road projects. Now, Mahatir’s government will be reviewing each of these contracts, which the new finance minister has called “completely lopsided.” They’ll be either canceling them or re-negotiating those contracts. Among the projects suspended are several oil and gas pipelines built by the state-backed China Petroleum
Pipeline Bureau. But the biggest project that’s been suspended is the East Coast Rail Link. The construction was being handled by China’s
state-owned China Communication Construction Company. And “85% of the financing was provided by the Export Import Bank of China.” The 430-mile rail line would connect a northeastern port on the South China Sea with strategic shipping ports on Malaysia’s
west coast. This is a key route linking the Belt and Road through Southeast Asia. At least until the project got suspended. One of the reasons Mahathir’s government suspended
it is that the ministry of finance calculated the true cost of the project to be 20 billion dollars, which is 3.5 billion more than the previous government’s estimates.” And that’s just too much money for Malaysia— a country that already has a problem with
national debt. Also, corruption. Remember how I said Najib was super into Chinese
investment? Well that’s because he was able to use it
to finance his massively corrupt projects. You know those oil and gas pipeline projects that got shut down? They had links to a Malaysian development
company called 1Malaysia Development Berhad, or 1MDB for short. That company is owned entirely by the Malaysian Finance Ministry. And guess what? Under Najib, 4.5 billion dollars went missing. And 700 million of that money flowed directly into Najib’s personal bank accounts. Huge mistake. If you’re going to steal public money, at least do a better job of hiding it! Using your own personal bank accounts? Rookie move, Najib. Anyway, the new finance minister has been
looking into that. And what he thinks happened is that Najib’s
government used money from the Export-Import Bank of
China to buy land owned by its own 1MDB company, so it could pay off its debts. And that’s not the only Chinese company
that was a little shady. China Petroleum Pipeline Bureau that was building those oil and gas pipelines I talked about
earlier also got a little perk. Najib’s government was paying them for construction that didn’t actually take place. “Only an average of 13 per cent of the pipelines’
construction has been completed, while almost 90 per cent of the projects’
value has been paid to CPPB.” Hmm, very interesting. Najib, by the way, was arrested last Wednesday. He’s been charged with “criminal breach
of trust and corruption.” He pled not guilty. So Mahathir goes after Najib for corruption and hits the Chinese investments that may have played a big old role in it. But this isn’t just a problem for Najib. It’s also a problem for the Chinese Communist
Party. The current Malaysian government wants to dramatically reduce construction
costs. And they want to renegotiate or cancel a lot of their contracts with Chinese companies. Mahathir has said that he’s not against the Belt and Road Initiative, but that he wants to renegotiate some of the
terms. And he’s headed to China next month to do
that. This has become a big test of Beijing’s
flexibility. The Chinese Communist Party has always tried to leverage the size of China and its economy to “help” it’s smaller neighbors in
Southeast Asia. And by “help,” I mean help them go into
debt so they become dependent on Chinese money, while building infrastructure with Chinese
companies that shut out local workers. But now, that pesky new Malaysian government
is saying, wait a minute, not so fast. And the Communist Party may be finding out it’s not quite as powerful as all the bluster. And what’s “Worse for China, other governments along its lengthy trade
passages may get similar ideas. Some might push to use more domestic contractors or seek better debt terms. A combative Malaysia could easily be just one of many bumps to come.” Of course, my favorite Chinese state-run media, the Global Times, is very concerned that this move to suspend Chinese investment could be very tough… for Malaysia. Particularly “the inconsistency and capriciousness” of the Malaysian government. But just when you think you’ve got Chinese state-run media figured out, they throw you a curveball— and actually tell the truth. Like when they said that “Malaysia is a
key point along the routes of the Belt and Road initiative.” Yes, it sure is. And I think the Chinese Communist Party has just figured that out. So what do you think about how Chinese investment may or may not have played a role in corruption
in Malaysia? And is this a turning point in the Party’s quest for world domination? Leave your comments below. And now is the time when we answer questions
from fans who support China Uncensored on the crowd funding website Patreon. Wesley Brewer asks, “What is your opinion on how China (PRC) and China (ROC) [meaning Taiwan] should be recognized in global politics? Two China Policy? One?” Good question. Once upon a time, most countries recognized Taiwan, the Republic of China, or ROC, as the legitimate government of China. It wasn’t until 1971 that the UN switched to the People’s Republic of China, which is run by the Chinese Communist Party. The US made the switch in 1979, and 90% of other countries have followed suit. The Chinese Communist Party has basically made the entire world pick: “You can only recognize one China, so will it be us, the big China with a billion people? Or will it be the puny island of Taiwan?” But I believe that’s a false choice. More and more, in Taiwan, the people see themselves as a completely
separate nation, an already independent country with their own identity that should be recognized by the international community. It’s just that other countries have all agreed to the false choice, that there can only be one China. So they’ve all picked only one China to have diplomatic relations with. In theory, the United States could officially
recognize both the PRC and Taiwan as individual countries. And if they did that, then other countries would probably do that
too. But that would be a dramatic change in US
foreign policy, and it would anger the Communist Party to an extraordinary degree. The alternative is to continue pretending that Taiwan isn’t really a country, but that’s also… not a great long-term solution, since it means constantly pretending something isn’t the way it really is. I don’t have the answer here. But there’s another possible scenario, too. If the Chinese Communist Party collapses someday, there might be a new government that doesn’t care so much about claiming Taiwan as a province of China. And then the situation would resolve itself. Wait…if the Chinese Communist Party collapses, then what would I be uncensoring on this show? I’d be out of a job! I guess there’s always Russia Uncensored. Thanks for your question, Wesley. And remember, if you want to have me answer your question
on the show, become a supporter of China Uncensored on
Patreon. You can contribute a dollar or more per episode. You’ll help keep the show going, get some nifty perks, and get to submit questions that I may answer on the show! So thanks for watching. Once again I’m Chris Chappell, see you next time. Every Friday, we put together a half-hour version of China
Uncensored that you can watch on TV in New York, LA, and San Francisco. Or you can watch it free on ChinaUncensored.tv, or our apps for Apple TV, Roku, and Amazon
FireTV. So click below to check that out.

Paul Whisler

100 Comments

  1. The province of ontario in canada recentlt took a one billion dollar loan from the chinese communist party. I dont know how they will ever pay it back, they just shut down their gm factory and everyone is broke except for rich people who dont work in toronto (1.2 million for a one bedroom condo)

  2. lol i heard, "and it would piss off the communist party to a–" i was like lets do it!!!!!

  3. He looks like that bad guy from Matrix when he talks on earpiece. But his videos rock👍

  4. Congratulations! Malaysia 🇲🇾
    Thanks to Mahathir for saving Malaysia 🇲🇾from the world’s biggest loan shark,the great manipulator and most EVIL CCP 🇨🇳 Everyone must boycott Chinese products and services such as airlines and telecommunication services and any types of business. I recommend a worldwide economic embargo against CCP China to get rid of their global denomination.

  5. I worry about another our neighbor, kamboja and laos.. I guess they are will fall to cina..

  6. You are just a biased guy…bend on negative propaganda on china… obviously remunerated for doing it…craps

  7. We always wished to have a leader like mahatir, now we have one, his name is imran khan. But the so called CPEC is still eating us. still praying for the best!

  8. Philippines are now into the debt trap. They are building in the Philippines using Chinese workers all the while the Philippines has a 15% unemployment rate.

  9. Good on you Malaysia you are very than Australia and Africa who are heavily in debt and losing assets

  10. China is good player of underground Communism system on all 3rd World Countries and financiers of LEFTISTS and RIGHTISTS people on all 3rd World Countries whose leaders were implemented their own evil, greed and Corrupt laws on their own Constitution like Africa and more 3rd World Countries around the World.

  11. Malaysia's government are never squeaky clean in the first place hahahaha China met their match on playing dirty

  12. Eyy yoo Chris next you have to expose the investment in Indonesia

  13. 睡吧,睡吧
    我亲爱的宝贝
    好听吗?
    我不爱你,也不恨你。
    我只想唱歌给你听

  14. The fucking US threatens Philippines President Duterte if he doesn't listen to them and do what America tells him to do. The US government will cut their assistance. This shit doesn't mean nothing to you MF. Thanks, President Duterte told American Diplomats to packed their fucking bags and fuck off from the Philippines. Watch Mr.Duterte speech at the press conference from YouTune. That was a great speech. F U America!! Watch the real news, you PRICK!!!

  15. Hurm… thanks also to Japan..why?.. lucky our PM got good relationship with Samurai's government..with super lower interest..we can at least survived again.. thanks Dr M!!!

  16. I think what China is doing is definitely wrong and neo-colonialism, but didn't these countries have to take out a loan for it to happen? They need to learn how to manage money and figure out how to actually pay their debts back. China is going to eat their lunch.

  17. Why Vietnam and Myanmar ppl dunnot like Chinese ppl?? They not same meh?

  18. The Chinese are so dumb. They do everything in plain sight. They get caught. Just like their 50 Cent Army of trolls… Or wumao tang

  19. Singapore n Malaysia wouldn't fall into this China uncensored.

    Singapore n Malaysia keen to have food on the table n roof above our head.

    No matter what China does, this channels will have its say. No matter what America does this channels will take it holy.

    Don't come a spoil this region our relation with China.
    America is far away, you can instigate, nothing happen to you but your evil intention will made our region destabilized.

    Keep off, we are keen on food on the table n roof above our head.
    Not war… BACK OFF

  20. THATS HOW CHINA SUCK OTHER COUNTRIES MONEY. THATS HAS BEEN GOING ON IN THE PHILIPPINES AND THE GOVERNMENT LETTING CHINA TO CONTROL THE PROJECTS.

  21. Kalau najib masih pegang Malaysia, what will happen to malaysia. Ofcourse we have more debt. China people will enter malaysia for free and bring more their people, and maybe malay population will be lease than the china people.. think malaysian

    Whate will happen when their colony are more than us?

  22. Najib was a thieving pig who only achieved his position through superstition. Dr M is back and he won against the US and Soros before. I hope he has the ability to do so again and show SEA how the US and China are evil.

  23. You are a brilliant commentator!!! Where do you get all your superb info?

  24. Uh europe and west under chinese invasion now china town make sense😅😅😅😅

  25. Philippines should see this Video and be very very careful on the CHINESE PREDATORY LOAN. THIS HAPPENING NOW IN THE PHILIPPINES.

    STOP! STOP! BEFORE IT'S TOO LATE. THE DRAGON WILL SWALLOW YOU WHOLE.

  26. This is the economic gap and the procastination that the US and its rich European allies, the G7, created. They just left it to China's creeping geo-political economic strategy gobbles up the whole world . Once the vanguard of democracy in Asia and the Far East, in African continent and Europe and the Latin America, US just stoodby and watched the Chinese bank rolls the poor of the poorest African, Latin Americans and Asian countries. The US did not stick to original global policy of championing the democratic ideals and governance in the Third World countries. US and its rich allied countries could have done much than teach democratic crash commercialism and consumer mentality to their poor allied countries world wide. US and the G7 should have built those roads and infrastractures at low interest rates and less onerous economic conditions in the spirit of truly helping friends without expecting big profits in return. Once China sees the opportunity to seize, she does it in a power grab. See what China did to South China Sea. The US just stoodby and watched never lift a finger to stop China building militray infrastructures in the Spratlys. Now, the time is ticking for the entire world to see and fear the domination of a new super power. Will US and the G7 just standby and watch China does this power grab once more?

  27. You all can comment what you want but the reality is all South East Asian countries are dirt poor and weak with the exception of Spore. Reflect on yourselves why all the countries in SEA are so pitiful

  28. still have to proceed…too costly to cancel….I want the ECRL and HSR

  29. Yes we are province of china chunise are always welcome in sabha island

  30. when a country leader desperately needs money they will borrow it from anyone even if it cost a country.
    Because no leaders is loyal to its country forever.

  31. Greedy China creating trouble to this peaceful planet.
    China crushed Tibet.
    China attackted peaceful bhudhist nation Tibet and occupied vast nation. 1000000 Tibetans were killed by Chinese while they were protesting their illegal occupation by China in 1959.
    Chairman Mao slaughtered ten million Chinese, his own citizens.

  32. Latest news Malaysia just resigned the loan and China will be running the system.

  33. Najib was corrupt, Mahathir wants a strong China. Western propaganda will not make China weak. China wants a strong third world. Days of US hegemony are over.

  34. Seem like a scary movie "dead trap" whn fall into deadly mud.. Becareful Tun mahartir. Other wise bumiputra in trouble.

  35. Fake News.Malaysia will resume it back just a few months.Stop talking nonsense.

  36. I live in china and I love your honesty and to the point. Your fantastic ♥️

  37. Cina selalu memanfaatkan pejabat korup di negara targetnya. Contohnya Najib Razak di Malaysia yang sangat dekat dengan Cina dan programnya. Kekalahan Najib Razak adalah pukulan keras bagi rencana Cina di Malaysia, karena Perdana Menteri yang baru yakni Mahatir malah menegoisasi ulang deal koruptif yang dibuat oleh Najib dengan Cina, dan membatalkan rencana perjanjian sebelumnya. Cina tidak menyangka partai yang puluhan tahun berkuasa bisa kalah, hal ini di luar dugaan Cina dan membuat rusak rencana Cina di Malaysia sebagai salah satu negara yang dilewati OBOR.

  38. Mahatir menghentikan proyek jalur kereta Cina senilai 20 milyar dolar. Kemudian proyek 2 jalur pipa gas senilai 2,3 milyar dolar.

    https://m.dw.com/en/malaysias-mahathir-dumps-chinese-projects-amid-new-colonialism-fear/a-45160594

  39. Very sad but also very true, China will have to stop this new Neo colonialism Approach to countries abandoned by former colonialists. Mahathir Mohammed is himself half chinese and yet tells the truth.

  40. America is Buy Back all the American Stock back from China, this will Cause the Value of these Stocks to Go Up,

  41. We dont want belt and road project of china,.
    Were no taiwan nor hong kong . Philippines. 2019.

  42. Beware of dealing with the criminal communists… remember Venezuela???? Rich Venezuela????

  43. CAN INDONESIA BORROW MAHATHIR MOHAMMAD FOR 5 YEARS AND BE LIKE A TEMPORARY PRESIDENT???

  44. We love mahathir…. Fuck najib rosmah n geng. Jho Low go to hell

  45. Trump should recognize ROC to support them and show Communist China they are not as important as they think they are.

  46. Isn't the USA the only country that cannot acknowledge two Chinas because of agreements made during Nixon? (Sure there are others like Panama.)

  47. Belt and road. At first looks good for locals. But all hired to do the job are Chinese. Locals get pissed. I see the pattern

  48. Boycott Chinese products/services is the only solution! Retarding their expansion means very little, they can wait out the siege!

  49. I love your program. You are killing it. Keep it up. If I'm ever able to be in a position to promote your channel I will.

  50. If you're a "country" and you can't build roads for yourself…you're NOT a country…

  51. Chapel,,,,
    WHAT a SHIT OF VOICE…. ..
    BLOODY CHAPEL….
    CHAPEL BLOODY….
    ALLEZ SALUT

  52. I'm a Malaysian born Chinese, and I don't support communism (whether its full-fledged communism or a hybrid of capitalism and communism that China is using). I love Malaysia, it's a multi-racial, multi-cultural country. Communism is monotonous, bland, authoritarian, draconian, and it destroys cultures. I also don't want Malaysia to fall into China's debt trap, lest they steal our resources and annex our land. Thank God Mahathir won't allot it to happen.

  53. CHINA INC… satanic ILLUMINATI ROTSchilds Central Bank . Also known as the FED RES.

  54. Why have a 270km overland rail link from the South China Sea to the Straits of Malacca on the Malaysian peninsula?
    Ships discharge their load at Kuantan, rail it to Port Klang and load on to ships there.
    Does shaving off a few hundred kilometers worth the additional handling of the cargo.
    I only see by-passing Singapore waters as a good reason.
    Singapore do have the courage to board and seize a Chinese ship, when there is a lawful reason to do so.

  55. At least Malaysians have awaken from a bad dream: China controlling their resources. HOW ABOUT THE PHILIPPINES? KENYA? SRI LANKA? countries in AFRICA? These investments from China have the hallmark of MASSIVE CORRUPTION that fattened the pockets of greedy politicians.

  56. I hope Chinese Communist Government will collapse as soon as possible! Aamiin yra!!!

  57. Only countries with corrupt leader such as Najib Razak that China can ruined them with debt trap!

  58. Countries need to wake up before all our children will be forced to learn Chinese in school everyday

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