*MALAYSIA SHELVES PROJECTS*

MALAYSIA DEBT $250 Billion : to shelve China-backed projects worth $22 billion.

BEIJING : Malaysia will shelve three China-backed  projects worth a total of $22 billion until the  debt-laden southeast Asian nation can afford to pay for them, Prime Minister Mahathir Mohammad said on Tuesday during a visit to Beijing.

The project includes a  railway connecting Malaysia's east coast to southern Thailand and Kuala Lumpur, and two gas pipelines.

''I explained to the Chinese leaders why we can't have ECRL [East Coast Railway Link],'' Mahathir told Malaysian reporters at the end of his five-day visit, saying the project ''will be deferred till such time when we can afford [it].''

Chinese Foreign Ministry spokesman Lu Kang acknowledged that ''any cooperation between the two countries will inevitably lead to problems of one kind or another.''

''It's about borrowing too much money. which we cannot afford, we cannot repay, and also because we don;t need projects for Malaysia at the moment ...........our problem now is how to solve our financial deficit.''

Mahathir is trying to reduce Malaysia's national debt, which has ballooned to some $250 billion.

''We take a long-term view of the relationship between our two countries and will resolve the issue through dialogue and negotiation,'' Lu told a regular press briefing.

After meeting Premier Li Keqiang on Monday, Mahathir said he believed, China would help Malaysia resolve its fiscal problems.

The Malaysian leader also warned against ''a new version of colonialism happening because poor countries are unable to compete with rich countries just in terms of open - free trade. [AFP]

The Honor and Serving of the latest Operational Research on State of the world continues.