China-backed contracts in Malaysia are in a state of uncertainty after Malaysian officials linked some of them to possible corruption.
Malaysian Finance Minister Lim Guan Eng said on Tuesday, June 5, two oil and gas pipeline projects, awarded to China Petroleum Pipeline Bureau, may be part of the 1MDB fund scandal.
The $2 billion pipelines are almost paid for, but are only 13% complete.
Similar investigation is ongoing in another China-backed project -the $14 billion railway project connecting Thailand to Kuala Lumpur.
Malaysian Prime Minister Mahathir Mohammad said on Wednesday he would soon send an envoy to Beijing to renegotiate infrastructure contracts. He warned that some of them may be terminated.
The contracts were signed under the leadership of former Prime Minister Najib Razak.
Najib is under investigation for his alleged role in the 1MDB fund scandal.