BENTONG, Jan 24 — MCA president Datuk Seri Liow Tiong Lai today criticised former prime minister Tun Dr Mahathir Mohamad for allegedly playing up racial sentiments with regard to development projects of the government.

He described as "a sad situation” Dr Mahathir’s alleged use of the Forest City development in Iskandar Malaysia, Johor, and the proposed East Coast Rail Line to garner the people’s support.

"I regret that Tun M has turned these into a very racial issue against China and the Chinese. We respect him as a leader but today he has changed.

"He cannot use the racial approach, and it has worsened because the DAP plays along. They try to label MCA as an agent for China and create the perception that this is a racial issue,” he said after presenting aid at Sekolah Jenis Kebangsaan Cina Khai Mun Pagi here.

Liow said he hoped that Malaysians, as wise people who accepted racial diversity and religious harmony, would reject leaders who used racism to undermine relations between countries.

"Chinese investments are important for national economic growth and they know that they have to follow Malaysian laws if they want to invest here. We will also ensure that the interests of Malaysians are well protected and taken care of.

"When Tun M used the racial issue and was too attached to the political agenda in this issue, I feel he had mistaken the direction because we need investment to become a developed nation,” he said.

Dr Mahathir had reportedly said that Chinese investments in the Forest City and the East Coast Rail Line projects were akin to mortgaging the country’s sovereignty to China in the long term.

Meanwhile, on Malaysia Airlines Flight MH370, Liow said a task force would be set up to manage affairs pertaining to the missing aircraft.

The task force, led by the Department of Civil Aviation, would handle the information and analysis of recovered debris following the suspension of the search for the aircraft on Jan 17, he said.

Flight MH370 with 239 passengers and crew on board disappeared while flying from Kuala Lumpur to Beijing on March 8, 2014.

The Boeing 777-200 aircraft has never been found, even after an exhaustive search by Malaysia, Australia and China over an area of 120,000 sq km of the southern Indian Ocean where it is believed to have gone down. — Bernama