Malaysia welcomes foreign direct investment like most countries but the surge of Chinese money in recent months has raised eyebrows, fuelling talk that Beijing could leverage on its economic presence here.

Kuala Lumpur has always strived for a delicate balance between China and the United States, as the two countries tussle for influence in the region.

But the scales appear to be tipping towards Beijing, analysts say, especially after two deals late last year involving asset purchases from debt-laden state investor 1Malaysia Development Berhad (1MDB).

Dr Oh Ei Sun, a senior fellow at the S. Rajaratnam School of International Studies, said: “When push comes to shove, China comes up with the money to help Malaysia weather economic challenges. So, it is only natural the government and people are friendly to China.”