By Chester Tay
The multiplier effect from China-financed infrastructure projects will help keep Malaysia clear from the kind of debt crisis faced by Sri Lanka currently.
At a seminar by Singaporean research organisation Institute of Southeast Asian Studies yesterday, Affin Hwang Capital senior associate director on equity research Loong Chee Wei said as Malaysia shows improvement in its infrastructure development, the country might be able to attract more foreign direct investment (FDI), which in turn will create more economic benefits for the government.
Yes, debt will rise, but these are government-guaranteed debts. At the end of the day, it will be off balance sheet [that] eventually [the] Malaysian government and public …
Read the full article at: http://www.scmp.com/news/asia/southeast-asia/article/2081113/china-financed-projects-help-malaysia-avoid-debt-trap
