Sorry, Singapore: Malaysia dumps assets to cope with US$245 billion debt
- Malaysia has, in the past year, sold off ‘non-strategic’ assets, with indications that larger projects may also be up for grabs
- Critics fear the moves will privilege an elite group and worsen ties with neighbouring Singapore
Government-linked investment company Khazanah, which has resolved to pare down its “non-strategic” assets, has so far got rid of its stakes in telcos, health care groups, banks and properties. Reports have indicated larger projects, such as the popular theme park Legoland, may also be up for grabs for the right offer.
In parliament earlier this week, Finance Minister Lim Guan Eng said a tower building in Hong Kong – which once housed the Malaysian Consulate-General – was being sold for 1.6 billion ringgit (US$392 million). This came just days after Khazanah was reported to be selling the 39-storey Duo Tower in Singapore, owned by M+S – a joint venture by Khazanah and its Singaporean equivalent, Temasek Holdings. Last month, Malaysia’s Axiata Group, in which Khazanah has shares, announced it would sell its stakes in Singapore’s M1 telco.
Khazanah also last year began selling shares in CIMB Bank, and dumped a 16 per cent stake in Malaysian-Singaporean private health care group IHH Healthcare. This move has raised eyebrows among analysts and opposition politicians, who have criticised the ruling Pakatan Harapan coalition for vague economic policies and failing to focus on remedying wealth inequality, with others commenting the sale reflected a cooling of interest in joint Singapore projects.