The Energy, Green Technology and Water Ministry has defended 1MDB's decision to sell all of its power assets under Edra Global Energy Bhd to China as the sale does not jeopardise national security.
Its Minister Datuk Seri Maximus Ongkili said Edra’s power assets only contribute 14% of the nation’s electric generation capacity.
"It is only 14% of the total generation capacity. 50% is still held by Tenaga Nasional Berhad while Malakoff Corp Bhd holds 24%,” said Ongkili.
He said that the government could still put in controls through laws or licenses on the power assets owned by Edra.
"In our view, foreigners own about 80% of Singapore's energy sector, so it should not be a problem," he said in his wrap-up speech for the Ministry's 2016 Budget at the policy stage on Tuesday.
It was reported on Monday that 1MDB said that 100% of the energy assets would be sold for RM9.83bil.
Ongkili said Edra's decision to sell of its assets was on the "willing buyer and willing seller" concept, adding that the Ministry would only act as a regulator.
"Our Ministry acts as a regulator and agreed to allow the company to sell 49% of its equity after scrutinising the matter, considering that it is part of transforming the energy sector," he said.
To a question from Datuk Mahfuz Omar (PAS-Pokok Sena), who asked whether the purchase would become a precedent for other foreign companies to purchase the country's strategic asset, Ongkili said that future transactions will be vetted by the Energy Commission.
"That is not true. We will look through it if it happens in the future,” said Ongkili.
He added that the Ministry would not make it a precedent.
"We will control it through licenses or other mechanisms so it will not affect national security," he said.
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