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Malaysia: China investment freeze to weigh on growth

The Malaysian government’s decision earlier this week to suspend work on the US$20bn East Coast Railway Link points to a bleak future for Chinese investment in the country. Halting work on these projects is likely to lead to a slowdown in investment growth. But given Malaysia’s weak fiscal position and that many of them were of dubious economic value, scrapping them could be in Malaysia’s best long-term interests.

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