Malaysia China relations: When shared interests dominate the narrative

The sale of Malaysia's national car, the Proton, to China has raised many objections from the nationalists in the country, especially Mahathir who gave birth to the idea. There must be good reasons for Najib to want to part with this national project that is all about pride and progress of the bumiputra policy. It is easy to criticise Najib for selling a national asset, though not strategic in any sense, on emotional grounds overriding economic and financial considerations. If the Proton is such an attractive proposition, not losing money but gaining popularity as a national car, with new technology and engines to propel it into an international product, Najib would not have done what he did.

 

The logic behind the sale of Proton to China is very similar to the sale of Lotus by Britain to Malaysia or Sweden selling its Volvo to China. In the case of Lotus and Volvo, there are technologies involved that the Chinese are interested. There is nothing of this when the Proton is concerned, an antique dressed up with bright colours to be sold only to the locals as a cheap product but losing its glitters as the days gone by. Najib either sells it now when there is a buyer or would have to end up folding the company when no one else is interested in this shell of a car manufacturing company. There is nothing worthy or worthwhile for anyone to want to buy the Proton unlike Lotus or the Volvo. Period. China is actually doing Malaysia a big favour by pouring money into a dead end product and giving it a future with the injection of modern technology and engines to give it a new life. Would the critics be able to see it in this light?

 

There are times when interests collide and times when common interests compliment and would bring about more cooperation to benefit both parties. China has a great strategic interest to want to invest in Malaysia for strategic and economic reasons. The greatest fear of China is the choke point in the water ways through the Malacca Strait and the Strait of Singapore. 80% of China's oil flow through these narrow channels of water and with the Americans posing a greater threat in its increasing belligerent rhetoric against China. The latter has to do something to avoid a blockage of the Straits by the Americans.

 

China is looking at the geography of the region and found several alternatives to break away from the choke points. China is making big plans to find alternative routes for its oil supply from the Middle East bypassing the Straits of Singapore and Malacca in Gwadar, Pakistan, oil pipeline in Myanmar, a possible cutting of the Kra of Isthmus and cutting across from peninsula Malaysia. The strategic plan would involved several options and Malaysia is just one of them.

 

Why would Malaysia want to be part of this Chinese strategic plan? What benefits would Malaysia derive from it? For centuries, Malaysia has been bypassed by the strategic location and infrastructure of Singapore as a regional transportation hub. In the Chinese plan, involving great engineering, infrastructure development and financing, Malaysia would become the next transportation hub of the region to rival Singapore. China stood to gain strategically with its development in Malaysia. And Malaysia stood to gain economically enormously in replacing Singapore as the new transportation and financial centre. When both countries have so much to gain, there are all the reasons for Malaysia to rethink its strategic interests to participate fully in a plan that would make Malaysia a vibrant hub of economic activities. Or would Malaysia choose to let this piece of pie go and seek closer ties with the Americans that are meddling in its internal affairs and could only offer to sell more arms and weapons that are totally unproductive and a waste of money?

 

Malaysia can also decide against being aligned and enmeshed intricately with China as some critics would caution. Malaysia has a choice, and so has the Chinese. If Malaysia does not want to come on board, China would accelerate its plan to cut the Kra Isthmus in quick time and by pass Malaysia totally. China has to do one or the other. Malaysia could choose one or the other. When China chooses to go the Kra way, all the benefits that Malaysia could gain would go up in smokes and Malaysia would remain on the side line of the world's major water way and transportation network.

 

The Chinese proposition makes a lot of economic sense to Malaysia. The Chinese would find a way out from the potential American blockage, and Malaysia would become the new shining centre of global trade. Najib and his govt must have gone through the whole thinking process to want in and the instant reward is the sale of a karung guni car that no one would pay a cent for to China, and at a good price and with potential of the Proton name gaining more traction with new technology and engines to compete in the international market. To Malaysia, there are so many avenues and opportunities to benefit from this strategic alignment with China's economic and strategic plan with no compromise to its national interests.

 

Now what would the critics say or could offer other than emotional gripes? Would the Americans buy the Proton for a song? Would the Americans turn Malaysia into a new transportation hub and a new financial centre, or into another war zone?