China and Malaysia avoid embarrassment with rail project revival

Mahathir hopeful for more investment after bilateral confidence restored

20190415 malaysia china east coast rail

The agreement signals Malaysia's foreign policy direction vis-a-vis a major power under Mahathir, who is seeking direct investment to sustain economic growth from slowing further. (Nikkei Montage)

CK TAN, Nikkei staff writer

SHANGHAI -- Prime Minister Mahathir Mohamad of Malaysia on Monday hailed an infrastructure deal with China as being mutually beneficial for both countries, a stark difference from his threat to walk away from the pact just months ago.

The agreement, reached on Friday, signals Malaysia's foreign policy direction vis-à-vis a major power under Mahathir, who is seeking direct investment to sustain economic growth from slowing further.

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