Thursday 28 May 2009

Q+A-Why is Malaysia Port Klang scandal important?

Malaysia's government is to unveil later on Thursday an independent auditors report into the construction of a free trade zone in Port Klang, a project aimed at boosting capacity in the port.

What started off as a 1.8 billion Malaysian ringgit ($516.2 million) project has ballooned into one which could cost more than 10 billion ringgit following an acrimonious pullout by the project's Dubai-based international partner.

The issue raises the question of risk foreign investors face when doing business in Malaysia. It has been used to attack the integrity of the government by the opposition at a time when Malaysia's new prime minister is still reeling from losses in the 2008 general election.

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