Umno’s Razlan calls Dr M’s plan to list Petronas subsidiaries a bad move

Razlan added that Petronas Carigali is Petronas’ leading subsidiary and a major contributor to the national oil company’s revenue. — Picture by Yusof Mat Isa
Razlan added that Petronas Carigali is Petronas’ leading subsidiary and a major contributor to the national oil company’s revenue. — Picture by Yusof Mat Isa

JOHOR BARU, Sept 27 — An Umno leader today voiced his concern over Prime Minister Tun Dr Mahathir Mohamad’s plan to sell shares in Petronas subsidiaries, including Petronas Carigali, calling it a “bad move”.

Umno supreme council member Datuk Razlan Rafii said Dr Mahathir’s plan to list Petronas Carigali must have been made without considering the long-term impact that it will have.

He pointed out that those who buy the proposed shares will have an interest in the Pakatan Harapan (PH) government because with the listing, it would be easier for affiliate business owners to buy and own Petronas Carigali shares.

“In the end, the people are being fooled into thinking that this listing will boost the Malaysian stock exchange, but it is just legalising the sale of government-owned companies (GLCs) to cronies and their stakeholders.

“Keep in mind, policies like this are very unhealthy and will cause anyone who takes over the country after Dr Mahathir’s administration to have problems,” Razlan said in a statement today.

He was commenting on Dr Mahathir’s plan to listing some of the national oil company’s subsidiaries, including Petronas Carigali, that was reported earlier today.

The prime minister said this during the JP Morgan Investor lunch in New York when told that the Malaysian stock market would be more attractive to investors if Petronas was listed.

Razlan, who is also the former Federal Territories Umno Youth chief, added that Petronas Carigali is Petronas’ leading subsidiary and a major contributor to the national oil company’s revenue.

“According to estimates, Petronas Carigali is worth at least RM250 billion to RM300 billion.

“For example, if Petronas Carigali sold only 20 per cent of its shares, it would earn RM50 billion to RM60 billion.

“According to the Finance Ministry’s trend, the government would ‘claim’ the sale of the shares as foreign investment (FDI) when it is selling national assets!” said Razlan.

He also recalled the effect Felda’s FGV Holdings Berhad had on Bursa Malaysia as well as the performance of its shares.

Razlan urged all parties to ensure that the plan to list Petronas Carigali does not happen to ensure the interests of the Petronas subsidiary are protected.

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