Rafizi’s misinformed scare-mongering of 1MDB’s Edra impending sale


LSS Report

Today, PKR’s Rafizi Ramli made a statement in Parliament about the possible sale of 1MDB’s Edra to foreign companies.

The problem is that Rafizi has again been very economical with the truth. Here is why:

Rafizi: Electricity tariffs might be raised if 1Malaysia Development Berhad (1MDB)’s Edra Energy is sold to foreign firms, PKR warned today.

PKR secretary-general Rafizi Ramli also alleged that Putrajaya had decided to relax previous restrictions on foreign ownership of energy assets so that consortiums from China and Qatar could bid for Edra at a higher rate than market prices.

LSS: Do you want 1MDB to sell lower and lose RM2 billion so you can whack 1MDB for losing money? And if 1MDB sells to Tenaga, you will say that Tenaga is bailing out 1MDB.

Countries such as Indonesia, Singapore, India, Australia and Thailand allows up to 100% foreign ownership in their electricity generation industry. In fact Thailand currently imports 7% of their power from neighboring countries such as Myanmar and Laos and this is scheduled to go up to 20% in the next two years.

In fact, Malaysia’s YTL is the largest private owner of Singapore’s Independent Power Plants.

Power plants are not like other industries such as shipping or airlines and you can simply pack-up the power plants and send it overseas via DHL or Poslaju. As long as the appropriate legislation and protections are all put in place, there is nothing to fear.

Even having said this, TNB is still the monopoly holder of the most important part of the business – the transmission and sale of power to consumers, thus Malaysia is still firmly in control of the power business in Malaysia.

National security is simply not an issue at all anymore and a very lame excuse from Rafizi Ramli.