‘PH must learn from Malaysia over China-funded projects’

MANILA – Sen. Leila de Lima urged the Duterte administration to “take heed” of Malaysia’s decision to cancel multibillion-dollar China-financed projects in fear of possible bankruptcy.

The current administration must analyze the “long-term economic repercussions” of all its planned projects funded by China, said de Lima.

“The Philippine government must take its cue from Prime Minister Mahathir (bin Mohamad) who decided to cancel three China-backed projects amounting to USD22 billion to avoid his country from falling into a debt trap,” added de Lima, chairwoman of the Senate Committee on Social Justice, Welfare and Rural Development.

“We need to take heed before it’s too late,” she stressed.

De Lima added that entering into loan agreement, especially those not obtained through competitive procurement, will “put not only our country in dire debt and cripple our economy, but also undermine our sovereignty and national security.”

Mahathir earlier confirmed that three China-backed projects – including a railway connecting Malaysia’s east coast to southern Thailand and Kuala Lumpur, and two gas pipelines – will be shelved until Malaysia can afford to pay for them.

De Lima asserted that the Philippines can best learn from the past mistakes of other countries in their dealings with China.

“Our national leaders should exert all honest efforts in protecting our country and the Filipino people against imprudent debt accumulation,” the opposition senator said.

The Duterte administration has allocated P8.2 trillion to rollout big-ticket infrastructure projects under the “Build, Build, Build” program over the next six years, with China as one of its main sources of funding./PN

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