It said this was despite contradictory signals from Prime Minister Dr Mahathir Mohamad following concerns that Chinese development projects could affect Malaysia’s sovereignty.
“Mahathir is known for being pro-Asia and during his time as prime minister from 1981 to 2003, forged good relations with China. Beijing and Chinese investors need not be overly concerned; the value of the relationship is understood by both sides,” the editorial said.
It said Malaysia needed Chinese investment and infrastructure expertise to develop and was an important part of the Belt and Road Initiative.
At the same time, the editorial warned Chinese firms to be less aggressive in their overseas business dealings.
Forest City, a luxury development in Johor, is one of the projects that came under scrutiny as it is seen as unaffordable for the majority of Malaysians and aimed at overseas Chinese.
Mahathir had described the 14 sq km housing project as a “foreign enclave”.
The editorial also reminded Chinese companies to be mindful of local culture and sensitivities when operating overseas, adding that race was a delicate matter in Malaysia.
In the run-up to the general election, Mahathir had said that Chinese investments were welcomed if companies set up operations in Malaysia, employed locals, and brought in capital and technology to the country.
However, he said this was now not the case, and subsequently pledged to review some of China’s investments in the country.
Malaysia had also recently haggled over the terms of a US$14 billion (RM55.73 billion) rail deal with its Chinese partners.