PETALING JAYA (June 4): Contracts with China and Singapore that are being reviewed will be handled via diplomatic channels, says Tun Daim Zainuddin.

In an interview with The Star, the chairman of the Council of Eminent Persons said Malaysia wants to maintain the close relations it has with both countries.

“China is very important to us. We enjoy very close relations, but unfortunately under the previous administration, a lot of China contracts are tainted, difficult to understand and the terms are one-sided,” said Daim.

Similarly, contracts with Singapore will be dealt via diplomatic ways, he said.

“We have to protect our neighbours. The fault is with us (the previous government) here.”

The government had announced the cancellation of the Kuala Lumpur-Singapore high-speed rail and the renegotiation of contract on the East Coast Rail Link.