Written by Staff Writer
24 Sep, 2018 | 10:06 am
COLOMBO (News 1st) – In a period of time, when the influence of China has given rise to serious concerns, the recently elected Prime Minister of Malaysia Dr. Mahathir Mohommad had clearly specified as to why he does not prefer the Chinese investment method.
The Malaysian PM stated that FDI from anywhere, even from China should be accepted, but that when it comes to giving over contracts to China or borrowing huge sums of money, those proposals need to be carefully considered.
Further, he also said that when a contract goes to the Chinese that they prefer to use their own labour and all materials imported from China and that even the payment is made in their country. At the end of it all, there is nothing gained by the other country.
The PM insisted that this type of contract will not be welcome and that the manner in which they develop whole and sophisticated cities, is very expensive and caters to foreigners and not average Malaysians.
SIGNIFICANCE TO SRI LANKA
The statement made by the Malaysian Prime Minister is something that should be taken very seriously, especially by those authorities bringing in Chinese investments to Sri Lanka. Why? Because Sri Lanka cannot afford to bring in substandard products into the economy.
China’s ‘Belt and Road Initiative’ has recently been the subject of concern as a number of countries which had received investments under the following program had been caught in a debt trap.
Last year the strategic Hambanthota port was given over to the Chinese on a 99-year lease due to the countries inability to repay the loans obtained for the 1.4 Billion USD project.
What are the types of investments that a country should attract?
Dr. Mahathir Mohomad clarified the issue in his recent interview. FDI from any country should be accepted as long as it brings in Capital, technology, set up plants, and utilize the countries labour and finally produce goods that the country could earn their export earnings from.
Also, it is totally unacceptable that measures have been taken to strike a blow on local employment by cutting out CESS Tax and putting the local economy at risk.
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