PETALING JAYA, Nov 24 — PKR’s Rafizi Ramli today questioned what other national assets will be put up for sale, after 1Malaysia Development Berhad (1MDB) gained exemption to sell Edra Global Energy to a foreign consortium.
The Pandan MP said that the sale goes against Putrajaya's own rules that cap foreign equity of select industries to no more 49 per cent, claiming that this would permit and encourage future exemptions of the limit.
“This poses a great risk to our own industry in this country, and hence the reason all along there was equity cap in certain strategic industries to avoid a lock stock and barrel approach by foreign companies,” he told reporters at PKR headquarters.
“It is opening a floodgate that will basically cripple the whole policy framework of limiting a foreign ownership in our strategy assets.”
The state-owned investment firm yesterday said it has agreed to sell its Edra Global Energy arm for RM9.83 billion (US$2.3 billion) to China General Nuclear Power Corporation (CGN), as it seeks to cut its debt and restore investor confidence.
Rafizi stressed that this sale would threaten the stability of the country’s energy production and challenge Tenaga Nasional Bhd’s (TNB) strategic placement in the country by allowing an international conglomerate a foothold to compete against it here.
TNB was one of three firms that submitted a bid to acquire the power generation assets of Edra Global Energy last month.
