Malaysian Prime Minister, Datuk Seri Anwar Ibrahim, has been an outspoken critic of Israel’s actions against Hamas. This stance has prompted criticism from his detractors, who are urging him to terminate a multi-billion dollar deal involving BlackRock Inc, citing its ties to Israel.
During a session in Parliament, Anwar defended the deal, stating that severing ties with any company over its connections to Israel was not a practical option. Furthermore, he reassured US investors that his government had no objections to BlackRock’s involvement in the consortium that is taking over Malaysia Airports Holdings Bhd for RM12.3 billion.
The support of the Prime Minister for the deal is viewed as vital for upholding the country’s reputation and attracting global investors, especially since Malaysia lacks trade or diplomatic relations with Israel. Anwar and his advisors assert that it would be unwise to selectively treat companies based on Palestinian issues, particularly when other major investors in Malaysia also have significant investments in Israel.
BlackRock, as one of the largest investors in Malaysia, holds significant stakes in the country’s equities and government bonds. Despite the controversy, BlackRock has indicated it would not partake in the privatization of Malaysia Airports, and the existing leadership team of the consortium would remain in full control.
The call to boycott BlackRock has arisen from the Boycott, Divestment, and Sanctions movement against Israel, which has gained traction in Malaysia due to strong anti-Israel sentiment in the country. This movement has already resulted in boycotts of global brands perceived as having ties to Israel, causing challenges for some local franchises and workers.
While opposition to the BlackRock deal has escalated in advance of a local election, Anwar has asserted that the issue has been politicized. He maintains that the deal has become a divisive topic at the local level, with individuals making unfounded allegations and casting aspersions.
The criticism directed at Anwar and his government concerning the BlackRock deal illustrates the delicate balance the Prime Minister must strike between aligning with Palestinian and Hamas sympathizers, and ensuring that Malaysia remains receptive to global investments.
Ultimately, Anwar’s position on the BlackRock deal underscores the challenges confronted by leaders who must navigate complex geopolitical issues while safeguarding their country’s economic interests.
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