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Malaysia in transition

Malaysia scrutinizes more China-funded infrastructure projects

A fraction of the work has been done but 90% of the budgets are gone

Malaysia's former Prime Minister Najib Razak and Chinese President Xi Jinping meet at the start of the Belt and Road Forum in Beijing, China, in May 2017.   © Reuters

KUALA LUMPUR -- Malaysia's Ministry of Finance is scrutinizing two gas pipeline projects worth 9.4 billion ringgit ($2.36 billion) after discovering there have been more payments made than work done.

One project is a 600km multiproduct petroleum pipeline connecting Melaka to Jitra for which the government has set aside 5.35 billion ringgit. The other is a 662km gas pipeline in Sabah with a budget of 4.06 billion ringgit. Contracts for both were awarded in November 2016 to China Petroleum Pipeline Bureau, a unit of state-owned China National Petroleum Corporation.

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