BEIJING — Multibillion-dollar China-financed projects in Malaysia have beencanceled because they aren’t needed and will saddle the country with anunsustainable amount of debt, Malaysian Prime Minister Mahathir Mohammadtold reporters on the final day of a visit to Beijing on Tuesday.

Mahathir told Malaysian reporters that both Chinese President Xi Jinpingand Premier Li Keqiang understood the reasons behind the cancellations and“accepted them.” China had earlier defended the investments as bringingtangible benefits to both sides.

The projects, comprising a $20 billion East Coast Rail Link and two energypipelines worth $2.3 billion, had already been suspended pendingrenegotiation.

“It’s all about pouring in too much money which we cannot afford, we cannotrepay and also because we don’t need these projects for Malaysia at thismoment,” Mahathir said.

While the projects could be restarted in the future if considerednecessary, Malaysia’s current focus is on reducing the national debt,Mahathir said.

“With that debt, if we are not careful we can become bankrupt,” he said,blaming the “stupidity” of the administration of his predecessor, NajibRazak, whom he ousted in elections earlier this year and now faces chargesof massive corruption.

Malaysia will still have to pay “substantial” penalties to extract itselffrom the projects and also needs to “find out where money that has beenpaid for the projects have gone to,” Mahathir said.