China Offers Economic Perks to Malaysia as it Tries to Ease Tensions over South China Sea

South China Morning Post (Hong Kong)

24 November 2015

Premier Li Keqiang offered Malaysia a string of economic perks as he wrapped up a four-day trip to smooth tensions in the South China Sea on Monday.

China would buy more of Malaysia’s treasury bonds, give it a 50 billion yuan (HK$60.6 billion) quota to invest in the Chinese capital market, and help build cheaper infrastructure, Li told business elites in Kuala Lumpur.

“Uncertainties in international financial markets are emerging, some countries … have seen sluggish or negative growth, high inflation rates and sharp depreciation of their currency,” the premier said.

“To ensure steady growth in trade relations between China and Malaysia, it is imperative to stabilise the financial market.”

Malaysia’s economy has suffered from a sinking currency and a slump in exports, and a corruption scandal surrounding Malaysian Prime Minister Najib Razak has dimmed investors’ confidence in the country’s leadership.

… Oh Ei Sun, a senior fellow with the S. Rajaratnam School of International Studies in Singapore, said the recent Paris attacks and the execution of a Chinese hostage by Isis gave Malaysia more excuse to deport Uygurs.

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Last updated on 24/11/2015