Since independence, Malaysia has become one of the Asian countries that experienced economic growth as a result of partnerships and foreign investment from foreign countries.
In the 1990s, the country began to attract investment in the high technology and electronics sector. The establishment of the Multimedia Super Corridor (MSC Malaysia) in 1996 aims to make Malaysia a technology hub.
However, the war conflict between Israel and Hamas since last October which killed more than 37,000 Gazans has listed the giant company Blackrock as one of the names that needs to be boycotted. Who exactly are these people?
Blackrock is one of the world's largest investment firms that manages financial products including mutual fund management, ETFs (Exchange Traded Funds) and alternative investment services.
Data as of April 2024, Blackrock recorded net assets of approximately RM1.14 billion mainly through iShares MSCI Malaysia ETF investments.
However, the insistence of a number of Malaysians urging the government to 'throw away' Blackrock's investment in the market has raised many questions about the local economic situation. What will the impact be?
Among the effects that can be seen clearly is the massive investment by Blackrock which is usually able to provide liquidity on the stock and bond markets. If they withdraw their investment, it could lead to reduced liquidity and make trading less stable and more difficult.
In addition, their withdrawal will also burden the government and companies in Malaysia due to a drastic reduction in bond buyers. This can lead to an increase in interest rates and have a negative impact on local borrowers.
Even more surprising, the position of the value of the ringgit currency can also be affected because if Blackrock sells Ringgit Malaysia (RM) assets and converts them to foreign currencies. His position in forex will be affected and decline.
In general, Blackrock's presence in Malaysia over the years has had strong roots in the local trade industry.
Steps to withdraw the investment need to be handled carefully by the authorities to reduce the negative impact on the national economy.
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