Second Finance Minister Johari Abdul Ghani said local companies stand to benefit from the nation’s participation as it would allow Malaysian companies to get involved in future infrastructure projects in the Southeast Asian region.
“If AIIB finances some infrastructure projects in Laos or Myanmar, our Malaysian companies which are strong in construction can bid for the projects.
“They are assured of payment because AIIB is funding it,” Johari said, citing one of the reasons for Malaysia to join as a member.
He was speaking to reporters after the Dewan Rakyat passed the AIIB Bill 2016 today.
Once the act is passed, it will allow the finance minister to subscribe on behalf of the government to shares not exceeding USD109.5 million.
Johari also said Malaysia must be an AIIB member as all Asian countries were behind the banking initiative and in a spirit of unity with other countries, “Malaysia should not be left behind”.
“It is very important for us to join. First to show our support for the Asian countries, all Asian countries are participating, so how can we exclude ourselves?
“We want to help all these poor countries in Asia to develop their infrastructure so that we can also sell our products easily.”
According to the bill, the AIIB will be entitled to import goods into Malaysia, free of any Customs duty and without any restriction on their subsequent sale in Malaysia.
The law will also confer the bank any exemption of taxes and duties which form part of the price of goods sold or services supplied.
Under the law, AIIB will enjoy immunity from every form of legal process, except in cases arising out of or in connection with the exercise of its powers to raise funds.
However, Johari said the AIIB can still be brought to court in cases of criminality.
“The immunity doesn’t cover criminal cases. They can be sued in court. The immunity only covers operations of AIIB to ensure no disruptions.
“The tax immunity is given by all countries agreeing to be a member of AIIB. Not Malaysia alone.”
AIIB started operations Dec 25 last year and has 57 member countries, all founding members. It is an initiative by the Chinese Government.