PETALING JAYA: The government, Khazanah Nasional Bhd and EPF have come under fire recently after the world’s largest independent infrastructure manager announced its intention to take a minority stake in Malaysia Airports Holdings Bhd (MAHB).
Global Infrastructure Partners’s (GIP) involvement came to light after Khazanah and EPF proposed a privatisation plan aimed at turning the airport operator into a globally competitive entity.
The plan will see the two government-linked entities own 70% of the stake in MAHB, with Khazanah raising its stake from 33.2% to 40%, and EPF from 7.9% to 30%.
GIP and the Abu Dhabi Investment Authority will hold the remaining 30%.
Public discontent has centred around the likely indirect involvement of US investment firm BlackRock, currently in the midst of acquiring GIP in a multi-billion dollar deal struck earlier this year.
Leading the protests have been civil society organisations such as the Malaysian Consultative Council of Islamic Organisations and BDS Malaysia.
They accuse BlackRock of “profiteering from genocide” through its stakes in US defence companies which allegedly manufacture weapons used by Israel.
FMT takes a closer look at BlackRock, and why Putrajaya is being pressured to cut ties with GIP.
What is BlackRock?
Founded in 1988, BlackRock is now the world’s largest fund manager with 89 offices in 38 countries. The investment firm’s assets were valued at US$10.47 trillion in the first quarter of 2024, according to a Bloomberg report.
In January, the New York-based company agreed to acquire GIP for a total consideration of US$3 billion plus stock in BlackRock. The transaction, which is conditional on regulatory approvals and customary closing conditions, is expected to be completed in the third quarter of 2024.
A check on BlackRock’s website showed that the company has maintained an office in Tel Aviv since 2016, offering a range of financial planning services to institutions and individuals in Israel.
BlackRock also holds equity in several global arms manufacturers, including a 7.4% stake in Lockheed Martin, which reportedly supplied Israel with F-16 and F-35 fighter jets in its conflict with Hamas.
Following Hamas’s attack on Israel on Oct 7 last year, BlackRock CEO Larry Fink denounced “the horrific acts of terrorism committed” against the Jewish state and said it stemmed from “hatred” and “bigotry”.
What’s the controversy?
For years, the Malaysian government has maintained its unwavering support for the Palestinian cause, including by pushing for Palestine to be made a full-fledged UN member state.
Activists also held peaceful pro-Palestine rallies and boycott campaigns against Israel-linked companies as a show of solidarity with Palestinians in the ongoing war.
Earlier this month, BDS Malaysia named Lockheed Martin, leading missile and missile systems producer MBDA, Hewlett-Packard, Google and Intel as companies “known to be complicit” in the violence in Gaza.
Several Perikatan Nasional leaders, including Wan Ahmad Fayhsal Wan Ahmad Kamal and Afnan Hamimi Taib Azamudden, have urged Putrajaya to halt the sale of MAHB shares to GIP. In his statement, Wan Fayhsal referred to BlackRock as a company that “funds genocide against Palestinians”.
On Saturday, former DAP MP Ong Kian Ming called for the government, Khazanah and EPF to hold a press conference and explain the deal as soon as possible rather than allow the opposition the opportunity to “control the narrative” at the next parliamentary sitting.
On Sunday, Khazanah managing director Amirul Feisal Wan Zahir gave his assurance that GIP would have no hand in the management of MAHB. He also said BlackRock has yet to complete its acquisition of GIP.
Earlier this month, Prime Minister Anwar Ibrahim dismissed allegations that MAHB will fall into the hands of a “pro-Zionist” company, adding that such claims were being raised by the opposition purely to incite hatred.
For now, it appears that the government will push through the privatisation, despite loud protestations. But will there be repercussions? - FMT
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