Analyst Heydarian's take on Mahathir's warning about foreign loans

GMA resident analyst Richard Heydarian thinks that the Philippines should consider the advice of Malaysian Prime Minister Mahathir Mohamad to be cautious about borrowing money from foreign countries such as China.

"Malaysia is a rich country so if a rich country like Malaysia warns 'wag tayong magpalubog sa utang, I think we should listen to them," Heydarian said in a phone interview on GMA News TV's Balitanghali on Monday.

Heydarian said Mahathir has warned the Philippines about the new kind of colonialism.

"Dapat hindi lang tayo tumitingin sa colonialism sa West. Dapat tinitingnan din natin 'yung colonialism galing sa East," Heydarian said.

"Para sa akin talagang independent-minded itong si Prime Minister Mahathir kasi he's standing up and criticizing both America, particularly si President Trump at 'yung kaniyang aggressive policies around the world, atsaka 'yung China dahil doon sa kanilang Belt and Road Initiative," he added.

The 93-year-old Malaysian leader has warned against borrowing money from other countries for projects, noting that it is better for the Philippines to grow within its own means.

"It is better for us to grow within our means. If you have the capacity to borrow, it must be because we can repay. But when you borrow money which we cannot repay, you are endangering your own freedom," he said.

The remarks came in light of the Philippines' aggressive borrowing to undertake 75 projects that are seen to lift the economy and make the country competitive.

The Duterte administration has committed to invest over P8 trillion until 2022 on the 75 projects, which pushed the country's total debt to a new high of P7.293 trillion in 2018. —Anna Felicia Bajo/KG, GMA News