1MDB Malaysia Berhad
1MDB Malaysia Berhad

The Chinese Embassy in Kuala Lumpur said the Wall Street Journal report accusing its government as “groundless”.

It said that China does not attach conditions on it’s cooperation with other countries and that it does not accept any groundless accusations in a statement made on January 8.

Diplomatic relations with China and Malaysia has been strained since the Pakatan Harapan took office as Prime Minister Mahahir Mohammand cancelled multi billion dollar ECRL and natural gas line project in Sabah.

Leading up to the GE14 Mahathir claimed that foreigners should not be allowed to buy units in the China-backed Forest City and their citizens would not be given visas to stay here angered the China government. 

Finance Minister Lim Guan Eng too offended China by accusing China companies of corruption last year. As a result China stopped buying Malaysia’s crude palm oil (CPO) and looked at alternate sources such as Indonesia and Thailand. Tourist numbers to Malaysia to have dropped dramatically.

The WSJ claim comes at a time when Malaysia needs China’s business as the country has been on a downward trend since Pakatan Harapan government took office.

WSJ reported senior Chinese officials offered to bail out 1MDB in 2016 based on minutes of a meeting that it has not shared. Previously WSJ shared unsubstantiated charts linking 1MDB to the donation received by former prime minister Najib Razak which has since been proven false.   

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