Sim Tze Tzin (PKR-Bayan Baru) said at present there were a lot of commercial interests in Malaysia especially with construction works in Bandar Malaysia and the High Speed Rail project.

“When they (AIIB) loan money, they might leverage on their interest. There could be vested commercial interest for China. China is looking at being the rising power in Asia. AAIB is an instrument to expand their power.

“They might want to give loans and expand their market penetration with their services and companies. Malaysia may be filled with companies from China,” he said while debating the AIIB 2016 Bill.

AIIB was created by China to offer financing for infrastructure projects as part of China’s Silk Road initiative, with a focus on bolstering links across Asia, the Middle East, Africa and Europe. It is seen as an alternative to the International Monetary Fund.

Sim also said tying up with AIIB will fail to create jobs for Malaysians as there may not be any technology transfer as seen in the construction of the second Penang bridge where China brought in their own contractors and suppliers.

He added such practices will have an impact on local engineers, who will not benefit from any exposure in local projects.

“But there is also some good. For instance when IMF gives loans, they ask for good governance, to fight corruption and greater transparency.”