ABOUT RM6.4 billion in new investments in China, India and Singapore have been made thus far by major state-linked companies, the government said today.

Deputy Economic Affairs Minister Mohd Radzi Jidin said these investments were made by Khazanah Nasional Bhd and Petronas Bhd between May 2018 and June this year.

These include buying RM553 million worth of shares in the Chinese stock market and RM84 billion in investments in India’s local bourse, Radzi told the Dewan Rakyat.

Other new investments are RM2.52 billion in N Financial Co, RM1.442 billion in IHH Healthcare, RM1.087 billion in Prince Court Medical Centre and RM635 million in CIMB Group.

“In April this year, Petronas bought equity in a Singaporean-based company called M Plus Energy Solutions Private Limited as a strategic move to expand its business and to enter the down-stream renewable energy industry,” Radzi said in response to a question by Ahmad Maslan (BN-Pontian).

Radzi said between May 2018 and June this year, Khazanah only made two sales of its assets to foreign parties, the first of which was 16% equity in IHH Berhad worth RM8.42 billion.

Second, Khazanah sold off equity in Singapore’s Second Integrated Development through holdings in M Plus S Private Limited worth S$1.75 billion.

This reply prompted Ahmad to ask how the ministry could classify Khazanah’s “investment” in IHH and Prince Court when it had sold both assets.

Radzi replied that Khazanah’s investment in IHH was from a share swap deal with a Turkish firm before the equity was sold to another firm at a later date.

In Prince Court’s case, Khazanah had bought the equity from Petronas Bhd before it sold it off to IHH, Radzi said.

Ahmad had then also asked what the government was doing to arrest the decline in profits for a number of its firms, including Boustead Heavy Industries (down 72%), PharmaNiaga Bhd (down 97%) and Petronas Gas (down 13%).

Radzi replied that their earnings had been affected by the sluggish trade in the global and local economy.

“The government is working very hard to ensure that the economy continues to grow well and that this is felt by not just these companies but by the general public.” – November 25, 2019.