The 'madman of China' sets sights on Malaysia

Criticism has been directed at the government's cancellation and deferment of infrastructure projects that involve Chinese state-owned enterprises (SOEs), amidst fears of upsetting China, and discouraging investments from the world's second-largest economy. 

The Edge reports that for China's Pacific Construction Group Ltd (CPCG), recent events have been no deterrent to investing here. A regional office in Kuala Lumpur, along with RM10 billion to be invested over the next 10 years in infrastructure and education are planed. 

CPCG, at present, have over 50 companies operating outside of China, and so far, it has not participated in any public project in the country.

It has set its sights on the huge potential market that is Asia-Pacific, and Malaysia will be its base to venture forth from. 

In an interview with the publication, CPCG founder Yan Jiehe says the remarks by Prime Minister Tun Dr Mahathir Mohamad and the decisions made on certain projects (including the Forest City development in southern Johor) have not surprised him. 

"I am aware of it. I think it is normal for the government to do this. If I am a Malaysian, I would not want my country to become a colony. I would be concerned about national security ...nothing is more important than national security," he says. 

The 58-year-old construction tycoon has been dubbed "the madman of China" by the China-media, owing to his bluntness and fearlessness. 

In February, the publication reports that he had sued six local government in the Gansu province, for late payments. 

The change in government, following the May 9 general election is no cause for concern, for him. 

"To me, my aim is to participate in the free market here, not indulge in bureaucratic corruption we have seen in the past that has been detrimental to the country's economy.

"I am saying that should Malaysia decide on CPCG as a partner, I do not ask for benefits. My conscience is clear. I am clean, in the sense that I have never budgeted for corruption in my projects. That is how I keep my costs low," he says. 

When asked about the government's suspension of the RM55 billion East Coast Rail Line (ECRL) and the work contract termination of the Mass Rapid TRansit Line 2 (MRT2), he said: "Government interference is necessary when there are issues that have been identified. I have heard about these matters, and I thought [the government's actions] were nothing unusual. In fact, I am not at all shocked. It is normal for the government of the day to have such concerns or make such decisions, especially given Malaysia's current national debt situation," said Yan.

He believes that retendering the MRT2 contract will allow the government to find a better contractor. 

Established in 1995, CPCG ranked 96th on Fortune's Global 500 list 2018, with an annual revenue of RM3019 billion last year. 

Over the past two decades it built its expertise in highways, municipal construction, water conservancy and buildings, as well as landscape design. 

Projects undertaken range from the Jiangyin Yangtze River BRidge, NAnjing Metro and Oileng Mountain tunnel in Dali city, Yunnan, to Lanzhou's new city and districts.

Yan says that as CPCG is not an SOE, it will hire locals, and source materials locally. 

"Malaysia's fundamentals are strong. You have excellent infrastructure, a robust ecosystem and a big pool of trilingual talents. Kuala Lumpur is thus a strategic launch pad for our expansion into Asia Pacific," says Yan.

CPCI Holdings Sdn Bhd, CPCG's Malaysian subsidiary, plans to employ 150 skilled professionals within the next five years, more than half of whom will be MAlaysians, as it positions itself as a major player across Asia-Pacific. Local materials will be utilised for the projects it participates in. 

In a statement released last week, CPCI said that they are open to increasing investment, especially for federal projects that will benefit people. 

At present, CPCI is involved in one construction project in Malaysia, an RM200 million contract to build workers' quarters in oil palm plantations owned by Felda Engineering Ventures Plantations Sdn Bhd in Sahabat, Sabah. Yan said that the contract was secured through open tender.