Any withdrawal of investment by BlackRock from Malaysia would bring about negative implications and effects in the effort to achieve the country’s investment agenda.
- BlackRock has had a presence in Malaysia since the 1990s as a global investment firm
- BlackRock owns equity investment in 100 listed companies in Malaysia covering the industrial sector and three of the largest entities representing banking institutions in the country
- This includes RM20.5bil in Bursa Malaysia and about RM7bil in government and corporate bonds
- BlackRock also holds shares in several multinational companies operating here such as Microsoft, Boeing, Intel, and Texas Instruments
Any investment by BlackRock has no influence on government policies, says Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
The Investment, Trade and Industry Minister said this is because there are no direct dealings with the company, which has billions invested in various sectors in the country.
“From the ministry’s perspective, we have no dealings with BlackRock. Our dealings are with companies such as Intel, Microsoft and others,” said Tengku Zafrul.
“We have no dealings with shareholders, including BlackRock, and the issue mentioned by YB Bagan does not arise,” he said when replying to a supplementary question raised by Lim Guan Eng (PH-Bagan) in the Dewan Rakyat on Thursday (June 27).
Lim asked if BlackRock investments in the country have had any influence on government policies, as claimed by certain quarters.
He also asked if there is a policy preventing companies here from dealing with other regional or global companies which may have dealings with BlackRock.
Tengku Zafrul said that there is no such policy.
“The issue doesn’t arise at all because there is no policy to prevent BlackRock, Vanguard or any other companies that have interest in global companies or those listed here,” he said.
Asked by Datul Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu) if the sale of Malaysia Airports Holding Berhad (MAHB) and Global Infrastructure Partners (GIP) and Abu Dhabi Investment Authority was discussed by the Cabinet, Tengku Zafrul said no.
“From the standpoint of governance, the decision was made by Khazanah at their level. As a minister, I was only made aware of this during the Cabinet meeting by the Prime Minister. By then, the decision was already done,” he said.
Earlier, Zafrul said that BlackRock has had a presence in Malaysia since the 1990s as a global investment firm.
“Based on data which is freely available as of May this year, BlackRock owns equity investment in 100 listed companies in Malaysia covering the industrial sector and three of the largest entities representing banking institutions in the country,” he said.
He added that this includes RM20.5bil in Bursa Malaysia and about RM7bil in government and corporate bonds, saying that BlackRock also holds shares in several multinational companies operating here such as Microsoft, Boeing, Intel, and Texas Instruments.
Tengku Zafrul said these companies are located in several states such as Kuala Lumpur, Penang, Melaka, Kedah and Kelantan.
He said the companies were involved in the semiconductor, aerospace, electrical and electronics sectors and added that these companies have invested more than RM48bil and have created some 15,000 jobs in several states.
As for employment and investment value, Tengku Zafrul said the companies have made significant investments in Malaysia, creating job opportunities, particularly in the targeted high-tech and high-value sectors of the country.
“Intel has invested RM32 billion and employs more than 10,000 workers; Texas Instruments has invested RM13 billion and employs more than 2,000 workers; Boeing, through its ACM has invested RM300 million and employs 900 workers, while ROHM Electronics (M) in Kelantan has invested RM3 billion and employs more than 2,000 workers.”
According to Tengku Zafrul, any withdrawal of investment by BlackRock from Malaysia, if it were to happen, would bring about negative implications and effects in the effort to achieve the country’s investment agenda.
BlackRock is currently the world’s largest asset manager and as of March 31, assets under its management stood at RM49.35 trillion.
It holds shares in nearly all publicly listed companies worldwide, as well as sovereign wealth funds for countries such as Saudi Arabia, United Arab Emirates, Oman, Bahrain, and Indonesia.