Zafrul: Blackrock has RM27.5b assets in Malaysia but no influence on policy

 

PARLIAMENT | Controversial US firm Blackrock has been investing in Malaysia since the 1990s and currently owns assets worth RM27.5 billion locally.

However, Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz assured that the government has no direct dealings with the company, nor does Blackrock have any influence over national policy.

“According to open data, as of May 2024, Blackrock as a global investment firm owns equity investments in 100 listed companies in Malaysia in industrial sectors, along with the three largest entities which are the banking institutions in this country.

“Overall, it owns assets worth RM27.5 billion in Malaysia — RM20.5 billion in Bursa Malaysia and RM7 billion in Malaysian government and corporate bonds,” he said.

He was responding to a question from DAP chairperson Lim Guan Eng (Harapan-Bagan) regarding the total amount of investments made by Blackrock and its companies in Malaysia.

Contributor to national export income

The issue erupted on May 15, when Khazanah Nasional Berhad announced that the Abu Dhabi Investment Authority and Global Infrastructure Partners (GIP) would form a consortium to acquire shares in Malaysia Airport Holdings Berhad.

The decision courted flak from various quarters after it was found that Blackrock, a company deemed to have close ties with Israel, is in the midst of acquiring GIP.

Elaborating, Zafrul explained that companies that hold shares in Blackrock have contributed greatly to Malaysia’s export income.

“Intel has contributed RM50 billion in export value for semiconductor components, Texas Instruments exports electronic components (RM20 billion), Microsoft exports information technology services (RM15 billion) and Boeing exports aerospace components (RM10 billion),” he said.

He also said the withdrawal of Blackrock’s investments from Malaysia will have negative effects on the country’s efforts to realise its investment agenda.

But if the government chooses to disallow investments from the company, it would not affect Malaysia’s trade with other countries, he added.

Besides that, he reiterated Prime Minister Anwar Ibrahim’s stand that there are no policies that prevent Blackrock from investing in Malaysia.

On Tuesday (June 25), Anwar said a distinction must be drawn between Israel-linked and Israel-based companies.

It may sound good to cancel all deals with Israel-linked companies such as Apple and Microsoft, but it is not realistic, he added. - Mkini