KUALA LUMPUR – Khairy Jamaluddin has come under fire for his vocal protests regarding BlackRock while also holding a directorship at one of the companies it invests in, CGS International Securities Malaysia Sdn Bhd.
Mohd Farhan Zulkefly Balan, the communications minister’s special officer, said Khairy seems to have overlooked his own position given BlackRock’s shareholding in CGS International.
“Khairy was appointed as a director of CGS International in March 2024, after the genocide.
“BlackRock holds shares in CGS International. So, what is the story, Khairy?” Farhan questioned in a post on X.
Previously, Khairy also assumed the role of non-executive independent director on February 28, alongside Tan Sri Shahril Ridza Ridzuan.
Farhan further pointed out that Khairy had approved the purchase of the Pfizer vaccine during his tenure as health minister, noting that BlackRock held shares in Pfizer at the time.
He said that even though the purchase predated the latest genocide in Palestine, the fact remains that BlackRock had an investment in Pfizer.
“It’s not about the timeline but about who BlackRock is and why the company has shares in Pfizer,” he said.
Farhan explained that finding a company without BlackRock as a shareholder, as Khairy proposed, is challenging since BlackRock invests in nearly all major companies globally – including those in Malaysia.
“When Khairy chose the vaccine, it was difficult to find one (that is) ‘BlackRock-free’.
“BlackRock holds shares in both Pfizer and AstraZeneca. Do you remember this, Khairy?” he asked.
Additionally, he said that BlackRock owns shares in several companies within states governed by Perikatan Nasional (PN).
“For instance, in PN-controlled states with gold mining operations such as Kelantan, BlackRock is a shareholder. A newly opened hotel in Terengganu also has BlackRock as a shareholder.
“Most large companies have BlackRock as a shareholder. We must fully understand this to avoid being easily misled,” he said.
These comments follow Khairy’s repeated protests against BlackRock’s involvement in the privatisation of Malaysia Airports Holdings Bhd (MAHB), claiming it would be tantamount to the Malaysian government abetting Israel’s genocide in Palestine.
Farhan acknowledged that BlackRock has faced public backlash for its investments in Israeli companies. However, he noted that BlackRock has shares in nearly all major companies worldwide – including Malaysia since 1990.
“They have invested in so many companies that BlackRock is now the second-largest shareholder in Bursa Malaysia. They invest in almost all listed companies, even in small amounts – such as in Google, Facebook, Apple, and Pfizer,” he said.
The BlackRock issue surfaced in Malaysia after the Gateway Development Alliance (GDA), a consortium including Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Global Infrastructure Partners (GIP), and the Abu Dhabi Investment Authority (Adia), announced an offer to take over the shares in MAHB which are not owned by Khazanah and EPF.
Under the proposed arrangement, GIP and Adia would join the consortium through a joint effort, GIP Aurea.
If finalised, Khazanah and EPF would own 70% of MAHB, with GIP Aurea holding the remaining 30%.
Farhan clarified that BlackRock has not yet taken over GIP.
“Even if BlackRock acquires GIP, Khazanah and EPF will sign the deal with the existing GIP management – not BlackRock. This is a guarantee by GIP,” he asserted.
Yesterday, GIP’s head of transport, Philip Iley, confirmed that BlackRock would not be involved in transactions related to MAHB’s privatisation. – June 22, 2024