24-5-2024 (KUALA LUMPUR) Malaysia’s government is under mounting pressure to drop an entity owned by American investment giant BlackRock from a plan to take the country’s largest airport operator private, as critics question the inclusion of a company with major stakes in arms manufacturers supplying Israel, which is engaged in an ongoing war on Gaza.
Malaysia has been among the most vocal supporters of the Palestinian cause since the onset of the war in the blockaded enclave last October, which has so far killed nearly 36,000 people, mostly civilians, according to the latest figures from Gaza’s Hamas-run health authorities.
Prime Minister Anwar Ibrahim has frequently criticized Israel’s bombardments of the territory and the United States’ continued diplomatic and military support of its Middle Eastern ally.
However, the opposition and civil society groups accuse Anwar and his administration of failing to back up tough words with actions, after a consortium that includes UK-based Global Infrastructure Partners (GIP) – bought by BlackRock in January – announced on May 15 a voluntary offer to acquire all shares of Malaysia Airports Holdings Berhad (MAHB).
“As the world knows, BlackRock is the main financier for arms companies that supply weapons that enable the genocide in Gaza,” Chua Tian Chang of the Palestine Solidarity Secretariat said on Thursday at a rally outside Kuala Lumpur.
“At this critical juncture, national assets are going to be handed over to foreign elements that go against the aspirations of the people of Malaysia.”
Malaysians have been actively boycotting businesses believed to have links to Israel and America, causing sharp losses for the local franchise holders of fast-food giants McDonald’s and KFC and US-based coffee chain Starbucks.
Earlier this month, Malaysia’s government was pilloried by the boycott movement for allowing the participation of US weapons maker Lockheed Martin – which manufactures the F35 fighter jets used in Israel’s bombardments of Gaza – at a defense trade fair in Kuala Lumpur.
With around a 7 percent shareholding in Lockheed Martin, BlackRock is the company’s third-largest investor.
In March, the government denied opposition claims that MAHB would be sold to GIP, with Transport Minister Anthony Loke telling parliament that the reports were an inaccurate assumption.
However, last week’s announcement by the Gateway Development Alliance consortium revealed that the Malaysian sovereign wealth fund – Khazanah Nasional and national private retirement fund EPF – are slated to raise their collective stake in MAHB to 70 percent. Meanwhile, the remaining 30 percent will be held by the Abu Dhabi Investment Authority and GIP, the BlackRock entity.
MAHB operates all but one of the 40 airports across the country, according to transport ministry data, and also owns and manages the Istanbul Sabiha Gokcen International Airport in Turkey.
The proposed deal, estimated to cost 18.4 billion ringgit (US$3.9 billion) once completed in the coming months, has the backing of the transport ministry.
The issue may struggle to gain traction due to the complicated nature of such business deals, but the government has also been accused of being unresponsive to concerns raised by critics, said Syaza Farhana Mohamad Shukri, head of the political science department at the International Islamic University of Malaysia.
“I don’t think the government has done enough to address the criticism. There are pros and cons here that people will forget about the issue, but it can be brought up again,” Syaza told This Week in Asia.
Chua, however, said that doing business with entities that have links to Israel runs counter to Malaysia’s public opposition to the mainly Jewish state’s assault on Gaza and criticism of the US government’s refusal to “prioritize human rights and humanity.”
“Do not jeopardize our future and international relations, the credibility and performance of this country, just because we see this as a dollars and cents issue,” said Chua, a former leader with Anwar’s People’s Justice Party.
“We suggest that the government carry out an in-depth audit to make sure that we are free of Zionist links, so that we are consistent.”
Anwar and the government should also live up to public expectations in pushing back against Israeli interests, especially in the case of BlackRock which has been “the biggest cheerleader of the genocide,” said Muhammad Rafique Rashid Ali, information chief of the Pejuang party.
“If the people can do all they can to boycott Israel and the US and to support the Palestinian struggle, then the government of today must do what it can to support it,” Rafique said at Thursday’s rally. “It is important to send a clear message, that we will not compromise with anyone who supports genocide.”
