SHAH ALAM, AUG 1: A Singapore’s news portal, The Independent warned that Malaysia is next to Sri Lanka to be trapped by debts to China.
Prior to that, the portal had reported that Sri Lanka is the first Asian country to have fallen into the “China debt trap” after receiving billion-dollar investment in huge infrastructural projects based on Beijing’s guidelines and promises.
Sri Lanka is currently USD8 billion in debt out of the total USD64 billion to China due to huge investment in various projects.
Consequentially a huge sum of its revenue had to be used to pay its debt instead of development which is much need by the country that has been free from civil war for the last 25 years, since 2009.
World Bank statistics and Malaysia Statistics Department has shown that companies owned by Chinese government has invested USD35.6 billion (RM125 billion) in Malaysia from 2010 to 2016.
The Independent: Malaysia trapped in debt to China?
