MANILA – The Philippines is about to get infrastructure financing from China, but the Southeast Asian country must learn a lesson from neighboring Malaysia to secure contracts that are transparent, Malaysian premier-in-waiting Anwar Ibrahim said Tuesday.
Malaysian Prime Minister Mahatir Mohamad canceled two infrastructure projects backed by China, with a cumulative value of $22 billion, as Malaysia could not afford the loans and could lead into bankrupting his nation.
The projects were authorized by former premier Najib Razak.
“Mahatir’s position is the deal was somewhat dubious, was prone to corruption … and we can’t afford it now … So we took the position of canceling it for renegotiation,” Ibrahim said in a press briefing during the Management Association of the Philippines (MAP) 2018 CEO Conference in Makati City.
Asked if the Philippine government should do what Malaysia did, the premier-in-waiting said his country’s experience should serve as a lesson for the Philippines.
“Could this be a lesson? Yes, in the sense that contracts, arrangements by governments, must be transparent because, otherwise, those in power will make certain arrangements that is dubious and the next generation will suffer,” Ibrahim said.
Budget secretary Benjamin Diokno has said that the government is targeting to secure at least ten loan financing deals with China when Chinese President Xi Jinping visits in November.
Of the $9 billion in loans for Philippine infrastructure projects committed by China in 2016, only one loan agreement has been signed since then – the Chico River Pump Irrigation project, valued at P4.372 billion or $81.81 million.
During the MAP CEO conference, Ibrahim also advised Filipino businessmen.
“What can I advise? I’m not a businessman. You know best, I can only suggest that please save the society, care for the welfare of the workers, be more compassionate,” he said. (GMA News)
