US firm BlackRock has invested in Malaysia since the 1990s and owns assets worth RM27.5 billion in the country, parliament was told today.

Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz told the house that Malaysia’s investment agenda would be negatively affected of BlackRock were to withdraw its investments in the country.

He assured the MPs that the US investment giant has no direct dealings with the government and does not influence national policies.

Tengku Zafrul said BlackRock has equity in many companies worldwide, including the sovereign funds of Saudi Arabia, the United Arab Emirates, Oman, Bahrain, and Indonesia.

“BlackRock, which is the largest asset manager in the world with assets under management worth US$10.5 (RM50) trillion as at March 31, 2024, also holds equity investments in 100 public-listed companies in Malaysia as of May. This includes the industrial sector, with the three largest entities being banking institutions in the country. Overall, BlackRock owns assets worth about RM27.5 billion in Malaysia,” he said during minister’s question time.

Tengku Zafrul said this in reply to a question from Lim Guan Eng (Bagan-PH), who asked about BlackRock investments in Malaysia and the economic implications if these investments were to be withdrawn.

BlackRock has been the target of boycott calls in the country because of its large holdings in arms manufacturers that are said to be profiting from the Israeli onslaught on Gaza, which the United Nations’ top court has called “plausibly” a genocide.

Tengku Zafrul said RM20.5 billion of BlackRock investments were in the Bursa Malaysia stock market and RM7 billion in government and corporate bonds.

He said BlackRock’s investments in the government bond market are Malaysia Sukuk Global Bhd, Export-Import Bank of Malaysia Bhd, Malaysia Wakala Sukuk Bhd, Petroliam Nasional Bhd, and Malaysia Sovereign Sukuk Bhd.

Tengku Zafrul said BlackRock was also a shareholder of several large multinational companies operating in Malaysia, including Microsoft, Boeing, Intel, and Texas Instruments.

“Companies such as Microsoft, Boeing, Intel, and Texas Instruments that have shares owned by BlackRock contribute to the development of the industry and the states through investment projects carried out in Malaysia.”

“This includes Intel, which contributes to the growth of the semiconductor sub-sector in Penang; Infineon in Melaka and Kedah; Texas Instruments in the electrical and electronics industry in Malacca and Kuala Lumpur; and Boeing’s subsidiary, Aerospace Composites Malaysia Sdn Bhd, in the aerospace industry in Kedah.

“Microsoft has recently announced an investment that will contribute to the development of data centre infrastructure at a new location to be determined later.” – June 27, 2024.