Rm1 1b For Sapura Energy Was Literal Bailout Hassan

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PKR’s Hassan Abdul Karim said that the RM1.1 billion cash injection given to Sapura Energy Bhd fit the literal definition of a “bail out” despite the government stating otherwise.
The Pasir Gudang MP referred to the Cambridge Dictionary, noting that “bail out” is an English term and that its closest equivalent in Malay would be “menyelamatkan (to save)”.
“The government spent a large amount of money, RM1.1 billion, to save Sapura Energy. That is the definition of a bail out,” he said in a statement.
Sapura Energy landed into trouble around the mid-2010s when tumbling oil prices caused the company to start racking up losses and debt.
By 2019, the company’s problems had grown to the point that it was starting to record losses annually.
In a Bursa filing on Tuesday (March 11), Sapura Energy announced it had received an RM1.1 billion investment from Malaysia Development Holding Sdn Bhd (MDH) - a special purpose vehicle under the Minister of Finance (Incorporated).
Sapura Energy’s significant shareholder, Permodalan Nasional Bhd, also said the investment will be exclusively used to repay local vendors without benefitting any existing shareholders or financial creditors.
‘From Dr M to Anwar, not much has changed’
Hassan said negative connotations of the term “bail out” are because taxpayers and low-income citizens see it as the government wasting national funds to benefit large companies.
He argued that this stems from Dr Mahathir Mohamad’s first tenure as the prime minister, when the government bailed out iron and steel company Perwaja, Bank Bumiputera, and Malaysia Airlines.
Former prime minister Dr Mahathir Mohamad“So the arguments and reasons given by the administration of Prime Minister Anwar Ibrahim are the same as those given by Mahathir before, namely that the bailout is necessary for the country’s national interest and the interests of the Malays.
“So not much has actually changed in the leadership of our country from the time of Mahathir to the time of Anwar. 
“If the term ‘bail out’ is seen as evil, then another term should be found, such as ‘strategic investment’, according to (Communications) Minister Fahmi Fadzil,” Hassan added.
In a post-cabinet meeting press conference yesterday, Fahmi insisted the “strategic investment” differs from bailouts offered by previous administrations, particularly in comparison to Mahathir’s time in power. - Mkini

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