SHAH ALAM - The Malaysian government may need to reconsider the privatisation of Malaysia Airports Holdings Bhd (MAHB) to giant foreign investment companies if there is a risk that the country could be controlled or forced to comply with certain conditions.
Nusantara Academy for Strategic Research (NASR) academic fellow Professor Dr Azmi Hassan expressed concern that MAHB’s investment direction might be dictated by the investing companies, including BlackRock, which was a shareholder in all Israeli weapons suppliers if privatised to them.
"The privatisation of MAHB occurred around two to three years ago and did not raise many issues at that time because the Palestine-Israel war had not yet erupted.
"However, the situation has changed as the conflict in Gaza has worsened, making any matter involving Israel a sensitive issue in Malaysia at the moment.
"Malaysians are concerned that the privatisation of MAHB refers to the acquisition of the largest majority shares by Global Infrastructure Partners (GIP), a subsidiary of BlackRock, which holds significant stakes in US defence companies that supply weapons and aid to Israel.
"In addition to BlackRock, Lockheed Martin is also one of the shareholder companies listed in the Boycott Divestment Sanctions (BDS) Malaysia.
"If cooperation with any pro-Israel company becomes the country’s primary concern, then MAHB should not be privatised," he told Sinar Premium.
Elaborating further, Azmi said that there needed to be some sort of control by Malaysian-owned companies so that stakeholders like MAHB, which oversees the country’s main entry points, did not become too bureaucratic when privatised.
"The issue of MAHB’s privatisation also touches on the sensitivity of Malaysians when it seems that the government will lose control in managing 39 airports in the country if MAHB’s shares are dominated by foreign investment companies.
"Malaysia’s airport management company is a symbol of the nation’s sovereignty.
"I believe that local investors should have more control compared to foreign investors," he said.
On May 16, a consortium led by Khazanah Nasional Bhd (Khazanah) and the Employees Provident Fund (EPF) announced a conditional voluntary offer to acquire all shares in MAHB not already owned by them at an offer price of RM11 per share.
The consortium, known as the Gateway Development Alliance (GDA), consisted of Khazanah through its wholly-owned subsidiary UEM Group Bhd; EPF; a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA); and funds managed by GIP, one of the world’s leading infrastructure investors with experience in owning and managing airports.
Transport Minister Anthony Loke stated that the privatisation move allows Khazanah and EPF to have more control over MAHB, refuting allegations that Khazanah is selling MAHB to foreign companies.
Previously, Machang Member of Parliament Wan Ahmad Fayhsal Wan Ahmad Kamal claimed that Khazanah and EPF were planning to sell their MAHB holdings to GIP and BlackRock.
The Parti Pribumi Bersatu Malaysia (Bersatu) youth chief, said that GIP was entirely owned by BlackRock, the largest asset manager and was connected to Lockheed Martin, a company that supplies weapons used by Israel against Palestinians.
Commenting on Khazanah and EPF’s proposal to acquire all shares in MAHB, Azmi viewed it as a sensible initiative to reduce concerns about foreign companies controlling one of the country’s largest shares.
"The government is showing its sensitivity to public concerns regarding the Palestine-Israel conflict by deferring or choosing other domestic investment companies such as Khazanah and EPF to manage MAHB.
"This concern and sensitivity are necessary, especially when the situation in Palestine is very tense at the moment.
"We want to impose constraints on companies like Lockheed Martin without harming the country.
"I am confident that there are many other options besides GIP if MAHB is to be privatised," he said.