The fall of BlackRock has a negative impact on the investment agenda, said Tengku Zafrul
KUALA LUMPUR: Global investment firm, BlackRock Inc already has equity investments in 100 listed companies in Malaysia, involving a total asset value of RM27.5 billion.
Berita Harian reported that the Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz, said the amount involved a value of RM20.5 billion in the Bursa and another RM7 billion in government bonds and corporate companies.
Therefore, he said, any withdrawal of BlackRock’s investment from Malaysia, if it happens, will have negative implications and effects in the effort to realize the country’s investment agenda.
“BlackRock has been in Malaysia since the 1990s. As of last May, BlackRock as a global investment firm already has equity investments in 100 listed companies in Malaysia, covering the industrial sector with the three largest entities involving banking institutions in the country,” he replied. Lim Guan Eng’s (PH-Bagan) question at the Minister’s Question session in the Dewan Rakyat today.
Guan Eng asked the amount of investment by BlackRock or companies related to it in Malaysia, which states were involved and what would be the impact on the national economy if all of BlackRock’s investments in recent decades were dropped.
Commenting further, Zafrul said that as of March 31, BlackRock’s assets under management were worth RM49.35 trillion and the company also held shares in almost all publicly listed companies around the world and sovereign funds in countries such as Saudi Arabia, the United Arab Emirates (UAE ), Oman, Bahrain and Indonesia.
He said, among BlackRock’s investments in the government-issued bond market are Malaysia Sukuk Global Berhad; Export-Import Bank of Malaysia Berhad; Malaysia Kakala Sukuk Berhad; Petroliam Nasional Berhad and Malaysia Sovereign Sukuk Berhad.
“BlackRock also has an investment interest in Tenaga Nasional Berhad amounting to RM8.6 million, Metal Aluminum amounting to RM625 million and CelcomDigi amounting to RM526 million,” he said.
He said, BlackRock is also a shareholder of several large multinational companies operating in Malaysia including Microsoft, Boeing, Intel, and Texas Instruments.
He said that companies such as Microsoft, Boeing, Intel, and Texas Instruments that own BlackRock shares contribute to the development of the industry and the state through investment projects carried out in Malaysia.
“This includes Intel which contributes to the growth of the semiconductor sub-sector in Penang; Infineon in Melaka and Kedah, Texas Instruments in the electrical & electronics industry in Melaka and Kuala Lumpur as well as Boeing’s subsidiary, namely Aerospace Composites Malaysia Sdn Bhd (ACM) in the aerospace industry in Kedah,” he said.
He said, the company with BlackRock’s shareholding has already made a large contribution to the country’s export income between Intel, contributing as much as RM50 billion in export value for semiconductor components.
“Texas Instruments contributed as much as RM20 billion in the export value of electronic components; Microsoft contributed as much as RM15 billion in the export value of information technology services and Boeing already contributed as much as RM10 billion in the export value of aerospace components,” he said.