Malaysia will be indirectly affected amid China’s crackdown on its capital flight, Finance Minister II Johari Abdul Ghani admitted today.
Commenting on Beijing’s tightening of capital outflows, Johari said the matter was of concern as it would affect China’s domestic economy.
“When it affects China’s domestic economy, in a way, Malaysia will be affected indirectly.
“Our total trade with China is 16 percent, about RM1.5 trillion. If the domestic economy in China is affected, to a certain extent it will affect us,” he told reporters in Kuala Lumpur today.
The Chinese government this January barred its citizens from converting the yuan into other currencies to purchase overseas property.
The South China Morning Post (SCMP) last week reported that the developer of the Forest City project in Johor had purportedly closed all of its sales centres in China amid the crackdown on capital flight.
A spokesperson for the developer Country Garden Holdings however said it had shut down all its offices to make way for renovations, and denied it had anything to do with China’s said controls.
The Forest City project has become a major point of contention for the opposition.
Parti Pribumi Bersatu Malaysia (Bersatu) chairperson Dr Mahathir Mohamad has continuously accused Putrajaya of undermining the country’s sovereignty as a result of China nationals’ investment in the Forest City project.
Several government officials and Johor ruler Sultan Ibrahim Iskandar, who has a stake in the project, have refuted Mahathir’s claims.