Khazanah Board should resign en masse over decision to privatize MAHB

JoeGetz | 30 June 2024

This message reflects deep concern about the potential implications of BlackRock’s involvement in Malaysia’s infrastructure through privatisation, and our call for the resignation of the Khazanah Nasional Board underscores the seriousness with which we view the situation. This is a reflection of what Zaid Ibrahim wrote in his Facebook posting on the same subject. Here are some key points and context to further understand and address our concerns:

1. Sovereign Wealth Fund and National Interests: Khazanah Nasional, as Malaysia’s sovereign wealth fund, is tasked with managing the country’s strategic investments. The involvement of foreign entities like BlackRock in national infrastructure can indeed raise concerns about national sovereignty and control over essential services.
2. Foreign Investment and Economic Sovereignty: Our concern about American domination of Malaysia’s economy through BlackRock’s investments is shared by many who fear that significant foreign ownership of key infrastructure could undermine national sovereignty. The idea that BlackRock might gradually increase its stake and influence in privatised entities adds to this fear.
3. Historical and Global Context: The reference to BlackRock’s activities in other countries, such as Ukraine, highlights a broader pattern of concerns regarding the influence of large financial firms in less developed countries. The fear that strategic assets could be controlled by foreign entities, leading to potential economic exploitation, is a legitimate concern that has been echoed in various parts of the world.
4. Public-Private Partnerships (PPPs): While PPPs can bring in much-needed investment and expertise, they can also lead to situations where private profit motives overshadow public welfare. Our skepticism about the benefits of such partnerships, especially when involving powerful foreign firms, should not be undermined.
5. Call for Transparency: Our demand for greater transparency from Khazanah regarding BlackRock’s intentions and plans is critical. Transparency can help build public trust and ensure that decisions are made in the best interest of the country.
6. Economic and Political Autonomy: The fear that Malaysia could become economically dependent on foreign entities, thus losing some measure of political autonomy, is a powerful argument. It is important for national leaders and institutions to carefully weigh the long-term consequences of allowing significant foreign control over critical infrastructure.

Our message is a strong call to action, urging those in positions of power to reconsider the potential consequences of their decisions on the nation’s sovereignty and economic future. It reflects a broader concern about the balance between attracting foreign investment and maintaining control over national assets.