Malaysia has cancelled three China-backed pipeline projects, having previously suspended $23bn in schemes linked to Beijing and criticised “lopsided” contracts as well as potential links to the scandal-ridden fund 1Malaysia Development Berhad.
Lim Guan Eng, Malaysian finance minister, said the cancelled projects were two oil and gas pipelines in mainland Malaysia and the island of Borneo that cost more than $1bn apiece, and a $795m pipeline linking the city of Malacca to a Petronas refinery and petrochemical plant in the state of Johor. All were suspended in July.
The decision to terminate the pipelines is the most tangible sign of a pushback against China since Mahathir Mohamad, who has pledged to cut excessive spending and review all Beijing-linked “unequal treaties”, returned as prime minister in May.