BlackRock’s presence in Malaysia overstated, says KJ

Former minister Khairy Jamaluddin opposes the argument that BlackRock’s presence in Malaysian companies justifies allowing GIP to participate in MAHB’s privatisation.

PETALING JAYA: Former minister Khairy Jamaluddin has criticised the notion that BlackRock’s investment across various Malaysian companies should justify allowing an affiliated company, Global Infrastructure Partners (GIP), to participate in Malaysia Airports Holdings Bhd (MAHB)’s privatisation.

Khairy said certain quarters have been using the argument that BlackRock has its presence “everywhere in Malaysia”.

“This argument lacks substance and it’s not an apple-to-apple comparison,” he said in the latest episode of the “Keluar Sekejap” podcast.

“They said that BlackRock is everywhere. I want to say that its shareholding in those companies is small, around 1% to 2% and acquired in the open market, and they have no say in the management and they are not on the board of directors.”

Last week, Prime Minister Anwar Ibrahim said BlackRock and companies linked to it have been operating in states like Kelantan, Selangor, and Sarawak, as well as in the stock market.

Several quarters have been urging Putrajaya to scrap the deal due to GIP’s ties with BlackRock, which has been accused of “profiteering from genocide” through its stakes in US defence firms that allegedly manufacture weapons used by Israel.

However, GIP had said that BlackRock was not involved in the MAHB deal, despite the New York City-based company having agreed to acquire GIP in January. BlackRock’s acquisition of the firm will only be completed in the third quarter of 2024.

Anwar also told the Dewan Rakyat yesterday that GIP was chosen because it could accept that the chairman and CEO of MAHB must be Malaysian.

In the case of privatising MAHB, Khairy said that GIP and BlackRock, along with Abu Dhabi Investment Authority, would acquire 30% of the airport operator’s shares, giving them a say in management decisions.

The former Rembau MP said he was certain that GIP would appoint a representative to the board.

Khairy also expressed doubt about GIP’s expertise in airport management, despite receiving 60 million passengers through airports under its management last year.

“MAHB had (almost) twice more number of passengers than that when it received 119 million passengers through 40 airports including one in Turkey that it managed,” he said in the podcast.

MAHB manages 39 airports throughout Malaysia, including five international airports, 17 domestic airports, and 17 STOLports (short take-off and landing airports).