INTERNATIONAL Trade and Industry Minister Darell Leiking will provide the answer to whether Mitsui & Co Ltd’s acquisition of Khazanah Nasional’s stake in IHH Healthcare Bhd counts as a foreign direct investment (FDI).

Leiking was responding to a question from Ismail Sabri Yaakob (Bera-BN) on whether Khazanah’s divestment counted as a Japanese investment in Malaysia, drawing puzzled looks from the backbenchers in the Dewan Rakyat.

Khazanah last year sold its 16% equity in IHH to Mitsui for RMRM8.42 billion at RM6.00 per share. The sale saw the sovereign wealth fund’s stake in the hospital chain reduced to 26.05%.

Leiking said the details of the transaction were  previously disclosed by the finance minister’s political secretary, and that they were also on the record.

“I will provide more details in a written reply on whether (the deal counts as a foreign investment),” he said.

Regardless of definition, he added that the investment was surely a sign of foreign investor confidence.

Leiking repeated that he would provide a detailed written reply for Ismail to “digest” when Ismail continued to press him for an answer.

Leiking said more details would be forthcoming showing there were “more figures involved.”

He said that the divestment was not included in the particular answer as it pertained to the FDI and domestic direct investment. 

“You must remember this is about approved investment so it is not included in the answer.”

Approved investment came up to RM 53.9billion the year’s first quarter.

FDIs accounted for 54.4% at RM29.3billion. It saw an increase of 73.4% from RM16.9 billion in the same quarter last year.

DDIs amounted to RM45.6%.

Ahmad Maslan (Pontian-BN) ventured his opinion that the Khazahnah-Mtransaction fell under the category of divestment of national assets, not FDI.

Reezal Merican Naina Merican (Kepala Batas-BN) weighed in next with the statement that it would be odd to list the disposal of assets as a FDI. – July 15, 2019.