KUALA LUMPUR – Should the government halt all business with the United States, Germany, and Italy – the three largest weapons suppliers to Israel?
Azmi Hassan, a geostrategist and senior fellow at the Nusantara Academy for Strategic Research, posed this question amid accusations of hypocrisy by certain leaders exploiting the Israel-linked firm BlackRock Inc issue without considering its broader economic impact.
“BlackRock holds shares in Lockheed Martin, one of the main suppliers of weapons to Israel.
“The issue is that BlackRock has no direct involvement in the events in Gaza – they merely hold shares in the company.
“If this rationale is used to cease dealings with BlackRock, many other companies should also have their dealings halted, particularly those based in the US – the main supplier of weapons to Israel.
“We would also need to cease dealings with any German company, the second-largest supplier of arms to Israel, and any company owned by Italy, the third-largest,” he told Scoop.
The controversy surrounding BlackRock, which holds shares in weapons companies supplying arms to Israel, emerged after some parties urged the government to halt its impending 30% share acquisition of Global Infrastructure Partners (GIP).
Yesterday, Prime Minister Datuk Seri Anwar Ibrahim said that the nation could not cancel dealings with companies tied to Israel but operating in other countries.
He also urged that the issue not be used as political ammunition to incite the public.
Meanwhile, Azmi said the prime minister’s statement that the national economy might be jeopardised by the decision only highlighted the administration’s caution in handling the matter.
“The government may not want the cancellation to send negative signals to investors – especially from the US, Malaysia’s second-largest trade partner – if such action were taken.
“Because of that, we must be careful. I understand why the prime minister wants all parties to exercise caution regarding the BlackRock issue,” he said.
Universiti Tun Abdul Razak economist Barjoyai Bardai said Anwar’s statement had its merits, as the world recognises the US and Israel as economic powers dominating many industries and companies.
“Their products are exported worldwide, and Malaysia is no exception. If we aim to sever direct relationships with Israel or the US – a staunch supporter of Israel – it may be challenging.
“We all have to make our own efforts, but we risk regressing to a basic state if we must sacrifice our progress,” he said.
However, Bardai also noted that the government could postpone the share sale, as it is not an urgent matter, which the public may find acceptable.
“The sale of shares is not critical and does not need to be rushed or decided immediately, as MAHB does not desperately need funds. This is merely part of the expansion process.
“… it’s not because the government is short of funds unless the goal is to sell the 30% and the proceeds are needed to manage the national economy, which is another matter.
“That is not the issue today – the issue is to advance airport management in Malaysia,” he said. – June 22, 2024