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GIP will have full control and direction over share deal, Anwar says over BlackRock concerns

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has assured that the management of Global Infrastructure Partners (GIP) will be fully controlled by the company and not American asset management company Blackrock which is known to have pro-Israeli links.

During the prime minister's question time in Dewan Rakyat today, Anwar said despite BlackRock acquiring GIP, the management of GIP will retain full control and responsibility over the strategic direction of the company and the companies invested in.

"There was an announcement that BlackRock would take over GIP's interests, but GIP has already stated that this will not affect their role in managing the airports as this is their expertise and that there will be no interference by BlackRock.

"Hence, issues regarding BlackRock do not arise here," he said.

Anwar said this in response to a supplementary question by Wan Ahmad Fayhsal Wan Ahmad Kamal (PN-Machang) who enquired about whether Malaysia plans to hand over its airport management to such companies, consequently leading to an economic war.

Meanwhile, Anwar added that BlackRock is currently the world's largest asset manager and has long invested in Malaysia with an investment worth RM24.7 billion and RM7.9 billion in Malaysian government and corporate bonds.

In a subtle jab towards the opposition, the prime minister also said that BlackRock's involvement in Malaysia was nothing new and started in 2021.

"However, we are now attacked, including by those from that side (the opposition) who seem to forget that the important decision to involve BlackRock (in the Malaysian investment) was made on Feb 25, 2021.

"Pagoh (Tan Sri Muhyiddin Yassin) was the prime minister at the time, including ministers who are now on that side.

"The decision made during that time was for Employee Provident Fund (EPF) to have the world's first and largest syariah private equity direct or co-investment separate managed account fund worth RM2.5 billion (USD600 million) managed by BlackRock.

"(And) if you ask me now about the decision made, I would defend it and I do not want to turn this into a political issue as EPF had probably reported to Pagoh (Muhyiddin) and the Cabinet that this (BlackRock) was an investment company only.

"(But) was BlackRock involved in any pro-Israel sentiment at the time? Yes, it did."

Sovereign wealth fund Khazanah Nasional Bhd (Khazanah) last month announced that it was leading a consortium known as the Gateway Development Alliance (GDA) in a conditional voluntary offer to buy all shares in Malaysia Airport Holdings Berhad (MAHB) that it did not own.

Besides GIP through GIP Aureus Pte Ltd, the consortium's shareholders also included EPF and Adia.

However, concerns arose after BlackRock, an American asset management company with pro-Israeli links, acquired GIP where the transaction is expected to be completed in the third quarter of this year.

Meanwhile, GIP had reiterated that BlackRock was not in any way involved in the transaction relating to MAHB privatisation through GDA.

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