KUALA LUMPUR: Blackrock Inc has never influenced government policy, says Tengku Datuk Seri Zafrul Abdul Aziz, despite pouring more than RM20bil into Malaysia’s stock market since the 1990s.

The Investment, Trade and Industry Minister said the US investment giant has no direct dealings with the companies in Malaysia that it has invested in such as Intel, Microsoft and ROHM Electronics (Malaysia) which operates a firm in Kelantan.

“From the ministry’s perspective, we have no dealings with BlackRock. Our dealings are with the companies such as Intel, Microsoft and others.

“We have no dealings with shareholders including BlackRock. The issue mentioned by YB Bagan does not arise,” he told the Dewan Rakyat when replying to a supplementary question by Bagan MP Lim Guan Eng.

Blackrock Inc’s indirect connection to a company involved in the privatisation of Malaysia Airports Holdings Bhd (MAHB) has been criticised by Perikatan Nasional politicians due to the former’s significant investments in Israel.

Blackrock is in talks to buy Global Infrastructure Partners (GIP), which aims to take a 30% stake in the MAHB privatisation deal.

Explaining Blackrock’s presence in Malaysia, Tengku Zafrul said the firm owns equity in 100 listed companies as of May, including RM20.5bil on Bursa Malaysia and about RM7bil in government and corporate bonds.

It also holds shares in several multinational companies operating in the country such as Microsoft, Boeing, Intel and Texas Instruments.

He pointed out that these companies are located in Kuala Lumpur, Penang, Melaka, Kedah and Kelantan.

These companies have invested more than RM48bil and created some 15,000 jobs in the semiconductor, aerospace, and electrical and electronics sectors, he added.

Among them are Intel which invested RM32bil and provided more than 10,000 jobs, Texas Instruments (RM13bil and 2,000 jobs) and Boeing via its subsidiary Aerospace Composites Malaysia Sdn Bhd (RM300mil in investment and employing 900 locals).

“There is even investment in Kelantan by ROHM Electronics (Malaysia) with an investment worth RM3bil with more than 2,000 employees,” Tengku Zafrul added.

To another question, he said there is no policy to prevent companies in Malaysia from dealing with regional or global companies that may have connections to BlackRock.

“The issue doesn’t arise because there is no policy to prevent BlackRock, Vanguard or any other companies that have interest in global companies or those listed here,” he said.

Tengku Zafrul also said the Cabinet did not discuss the sale of shares in the MAHB deal to GIP and the Abu Dhabi Investment Authority.

“From the government’s standpoint, the decision was made by Khazanah Nasional Bhd at their level.

“As a Cabinet minister, I was only made aware of this by the Prime Minister during Cabinet meeting. By then, the decision had already been made,” he said.

The MAHB deal will see GIP and Abu Dhabi Investment Authority taking a 30% stake while the remaining 70% will be held by Khazanah and the Employees Provident Fund.

https://www.thestar.com.my/news/nation/2024/06/28/zafrul-blackrock-does-not-influence-govt-policy