Malaysia’s Khazanah, Petronas mostly ‘exempted’ from Trans-Pacific pact rules

Visual from Petronas website. October 2015

Malaysian state fund Khazanah Nasional and state energy firm Petronas will be largely exempted from Trans-Pacific Partnership (TPP) regulations, as Malaysia is ready to allow some exceptions, the trade minister said on Wednesday.

Malaysia was one of 12 nations that finalised the trade pact with the United States. The TPP aims to liberalise commerce across nations accounting for 40 percent of the world’s economy but still needs ratification by each country.

It was not immediately clear how Khazanah and Petronas would be exempted, or what exceptions might be made, with discussions to be held with company boards in coming days. Parliament will debate the TPP after it reconvenes on October 19.

Malaysia had earlier expressed concerns that TPP would undermine its right to manage state-owned enterprises (SOEs) and policies of preferential treatment for ethnic Malays and other indigenous people, known as bumiputra.

Trade Minister Mustapa Mohamed said Malaysia had decided to revise its initial request for an absolute carve-out of Khazanah and Petronas from the deal and had sought a compromise.

“Whatever we discuss has to be in line with our socio-economic model, including the roles of state-owned enterprises,” Mustapa told reporters.

Khazanah and Petronas would now be subject to certain TPP disciplines, although the details had yet to be determined, he said. He did not elaborate.

Petronas, the country’s oil and gas producer, has rights over reserves under federal law. The company contributed a 29 billion ringgit ($6.88 billion) dividend to the government’s revenue in 2014.

Khazanah has a programme aimed at transforming state-linked firms to develop, among other things, human capital and the bumiputra community.

Also Read:

AEC unlikely to be implemented by end-2015

Shell transfers stake in Malaysia MLNG plan to Petronas

($1 = 4.2 ringgit) (Editing by Nick Macfie)

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.