KUALA LUMPUR: Greater scrutiny must be exercised over overseas investments to avoid a repeat of the Battersea Power Station project in London, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the initial investment in the project was too high and had resulted in losses, although efforts were now being made to turn it around.
“I agree with the calls and criticisms regarding certain decisions made in the past on the investment.
“Although efforts are now being made to turn things around, the initial investment was too high and incurred losses. The project is now being rehabilitated.
“I agree, we (must) be careful and ensure what happened with the Battersea investment in the UK is not repeated,” he said during Prime Minister’s Question Time in the Dewan Rakyat on Tuesday (Oct 27).
Anwar was responding to Hassan Abdul Karim (PH-Pasir Gudang), who questioned the billions of ringgit invested in the Battersea Power Station project, arguing that the funds could have been channelled into domestic investments instead.
The 42-acre Battersea Power Station redevelopment is a major mixed-use regeneration project led by a Malaysian consortium comprising SP Setia Bhd, Sime Darby Property Bhd, the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB).
More than five billion euros have been invested in the development by its Malaysian shareholders to date.
Meanwhile, Anwar said the government had prioritised domestic investments over the past three years, with government-linked investment companies (GLICs) initially expected to allocate at least 20% of their investments locally.
This proportion would be increased according to their readiness and capacity, he said.
He said institutions such as the National Trust Fund (KWAN), Retirement Fund (KWAP), Khazanah Nasional Bhd and PNB continued to explore investment opportunities both locally and overseas.
“However, we cannot deny that some, or even a substantial proportion, of overseas investments have generated high returns, as the figures show,” he said.
