KUALA LUMPUR – Preventing BlackRock from investing in Malaysia would negatively impact the national investment agenda, considering the company’s existing investments in giant international companies based here, said the investment, trade and industry minister.
Datuk Seri Tengku Zafrul Tengku Abdul Aziz has told the Dewan Rakyat that BlackRock holds shares in several big firms such as Microsoft, Boeing, Intel and Texas Instruments, which have been contributing to the industrial development in Malaysia through huge foreign direct investments.
For instance, he said, Intel had contributed to developing a sub-semiconductor station in Penang, and Boeing had invested in developing a station in Kedah, among others.
“Their significant investments have also created job opportunities, such as Intel (which invested RM32 billion) creating more than 10,000 jobs, Texas Instruments (which invested RM13 billion) creating 2,000 jobs, and so on.
“In terms of export value, Intel has contributed RM50 billion and Texas Instruments RM20 billion, and so on.
“I hope this explanation is clear: if there is an elimination of investment from BlackRock in Malaysia, if it happens… clearly, it will have negative implications for the country (in our efforts) to realise the national investment agenda,” he said.
Tengku Zafrul said this during Minister’s Question Time when answering Lim Guan Eng’s (Bagan-PH) question on the economic impact on the country if all BlackRock investments over the past few decades were withdrawn.
Earlier, Tengku Zafrul said BlackRock was the biggest asset management company in the world with worldwide assets of over RM49.35 trillion as of March 31.
He said BlackRock owned shares in almost all publicly listed companies worldwide and had been investing in companies in Malaysia since the 1990s.
BlackRock now has equity in over 100 listed companies in Malaysia in the industrial sector, as well as in three Malaysian banking institutions.
Overall, the company has assets of about RM27.5 billion in Malaysia, including RM20.5 billion in Bursa Malaysia and RM7 billion in government bonds and corporate companies.
Tengku Zafrul, however, clarified that the Malaysian government had no direct business with BlackRock, saying that his ministry only dealt with the companies that BlackRock had invested in.
“We do not stop BlackRock or other global companies that have interests in Malaysia (to invest) in Malaysia, (because) we have no direct involvement, nor do we have the policy to stop them at the moment,” he added. – June 27, 2024