Malaysia in tough spot on BlackRock investment
An economist said if Malaysia wanted to sever all ties with entities linked to Israel, it would create a dilemma concerning diplomatic relations with Israel's allied countries.
SHAH ALAM - Malaysia is in a difficult position as rejecting investments from BlackRock, which is linked to Israel, would not only affect Malaysia's economy, but could also discourage other foreign companies from investing in the country.
Economist Professor Dr Baharom Abdul Hamid said the potential for other foreign investments could be much greater than the current market value of BlackRock's investments in Malaysia, which amount to USD 4.3 billion or RM 24.7 billion.
"If we stop all cooperation with BlackRock, our capital market, especially Bursa Malaysia, will be shaky.
"Foreign investors will lose confidence because most of these foreign firms, no matter what, will have some connection with Israel, just like BlackRock. They will be afraid to enter Malaysia. So the impact is quite significant," he said when contacted.
According to publicly available data as of May 2024, BlackRock, as a global investment firm, already has equity investments in 100 listed companies in Malaysia across various industrial sectors, with the three largest entities being banking institutions in the country.
The data also showed that BlackRock has interests in Bursa Malaysia shares worth RM 24.7 billion, as well as RM 7.9 billion in government and corporate bonds in Malaysia.
Commenting further, Baharom said an undeniable fact was that the world economy was dominated by Jews or those with Jewish interests.
"We have to admit this; it is a fact. The world's major economic power is the United States (US) and that country is a strong supporter of Zionist. This has been deeply rooted, especially in financial markets and capital markets, which are indeed dominated by Jews.
"So to stop (cooperation with BlackRock) entirely is impossible because it would cause tremendous pressure on our economy," he said.
Baharom added that if Malaysia wanted to sever all ties with entities linked to Israel, it would create a dilemma concerning diplomatic relations with Israel's allied countries.
Moreover, he said, Malaysia's neighbouring country Singapore also has ties with Israel.
"If we truly want to reduce or eliminate all relations with those linked to Israel, do we want to cut diplomatic ties with the US and Singapore?
"Singapore clearly has relations with Israel. So how far do we want to go? Ultimately, who gets affected? It is the people," he said.
However, Baharom said the country could make gradual plans to reduce dependence on companies related to Israel.
He suggested that an alternative step could be to strengthen Islamic finance, banking and capital markets, which inherently did not have Jewish influence, but this required support and involvement from all citizens.
INFO
Arguments of supporters and opposers of the BlackRock-MAHB issue
SUPPORTERS' ARGUMENTS
1. BlackRock has long invested in 100 listed companies in Malaysia across all industrial sectors, including three banking institutions with investments worth RM24.7 billion in Bursa Malaysia and RM 7.9 billion in government and corporate bonds. Therefore, the sale of MAHB shares to BlackRock's subsidiary, GIP, is not something new.
2. BlackRock is a public company and is not owned by Israeli citizens.
3. The government does not have the capability to cancel BlackRock's involvement in Malaysian companies as it could harm the country's economy and citizens' jobs. Such actions would also cause other foreign firms to lose confidence in investing in Malaysia.
4. GIP is a leading infrastructure investor managing assets worth USD112 billion worldwide and has expertise in investing, managing and operating several international airports. This expertise will enhance MAHB's competitiveness.
5. We are in a difficult position and cannot sever ties with all companies and countries linked to Israel due to economic and geopolitical factors. For example, can we cut diplomatic relations with the US or Singapore that support Israel or boycott the iPhone because BlackRock is the largest shareholder in Apple?
OPPOSERS' ARGUMENTS
1. BlackRock has significant interests in arms suppliers to Israel's genocide plot in Palestine, besides making large investments in the Jewish state. BlackRock CEO Larry Fink is also a strong supporter of the Zionist regime.
2. The sale of MAHB shares is inconsistent with Malaysia's strong stance in supporting Palestinian independence and opposing Israel's atrocities in Gaza.
3. Airports are strategic assets involving national sovereignty and security, so they should not be controlled by foreign entities. MAHB owns 39 out of 40 public airports in Malaysia.
4. Although BlackRock holds shares in over 100 major Malaysian companies, most of these are passive investments where BlackRock is not involved in company management, and they are concerned that the opposite will happen with MAHB. These shares were also bought on the open market without Malaysian government involvement, as in the MAHB case.
5. MAHB is a profitable company, having made RM 543 million in profits last year. So why sell a profitable company that has been well managed by local people?
