Selling off part of Govt’s Petronas stake a bad idea, says BN
PETALING JAYA: Selling off part of the Government’s stake in Petronas to reduce the country’s debt is a bad idea, says Barisan Nasional.
“Rather than taking the easy way out, the Government should instead think of ways to improve the performance of Petronas within and outside the country.
“Barisan and Umno do not agree with any excuse whatsoever if the Government plans to sell 25% of its holdings in Petronas to settle debts which have been politicised,” said a statement issued by Umno headquarters’ strategic communications unit.
The statement is an apparent reference to an article in The Star on Saturday, titled, “Listing of Petronas among options to increase revenue.”
The article said that according to investment circles, the Government does have many options, some bold and creative, for it to raise finances to cover not only the revenue gap but also reduce government debt of RM1 trillion.
One option that has now been floated is the listing of Petronas, said the article.
The article went on to quote an (unnamed) investment banker saying that the disposal of a 25% stake in Petronas during a listing exercise will easily raise between RM150bil and RM200bil for the Government.
The statement questioned how the Government would be able to come up with the remaining RM800bil to pay off the country’s debts if it indeed decides to sell a RM200bil stake in Petronas.
“Is Pakatan Harapan planning to sell shares in other big companies or privatise some of the present agencies?” it said.
The statement asked whether the Government will invite foreign interference in the country’s government- linked companies (GLCs).
It said that it is possible that Pakatan would think of ways to sell off part of the Government’s stake in Khazanah Nasional and Permodalan Nasional Bhd.