Selling off part of Govt's Petronas stake a bad idea, says BN
Dark days: The Petronas Twin Towers rising behind a Petronas petrol station in Kuala Lumpur. â" EPA
PETALING JAYA: Selling off part of the Governmentâs stake in Petronas to reduce the countryâs debt is a bad idea, says Barisan Nasional.
âRather than taking the easy way out, the Government should instead think of ways to improve the performance of Petronas within and outside the country.
âBarisan and Umno do not agree with any excuse whatsoever if the Govern ment plans to sell 25% of its holdings in Petronas to settle debts which have been politicised,â said a statement issued by Umno headquartersâ strategic communications unit.
The statement is an apparent reference to an article in The Star on Saturday, titled, âListing of Petronas among options to increase revenue.â
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 countr yâs debts if it indeed decides to sell a RM200bil stake in Petronas.
âIs Pakatan Harapan planning to sell shares in other big companies or privatise some of the present agencies?â it said.
The statement asked whether the Government will invite foreign interference in the countryâs government-linked companies (GLCs).
It said that it is possible that Pakatan would think of ways to sell off part of the Governmentâs stake in Khazanah Nasional and Permodalan Nasional Bhd.Related NewsSource: Google News