[UPDATED]: Battersea investment too high, losses being recovered — Anwar

KUALA LUMPUR: The initial investment in London's Battersea Power Station redevelopment was too high and resulted in losses, said Prime Minister Datuk Seri Anwar Ibrahim.

However, he told the Dewan Rakyat that efforts were under way to recover the investment.

"Although it is now being recovered, the original investment was too high and suffered losses," he said during Prime Minister's Question Time.

Anwar was responding to Hassan Abdul Karim (PH-Pasir Gudang), who asked how much government-linked companies (GLCs) and government-linked investment companies (GLICs) had invested in the 15-year project and what economic benefits it had brought.

The 42-acre Battersea Power Station redevelopment is a major mixed-use regeneration project led by a Malaysian consortium comprising S P Setia Bhd, Sime Darby Property Bhd, the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB).

More than £5 billion has been invested in the development by its Malaysian shareholders to date.

Meanwhile, Anwar said major funds, including the Retirement Fund (Incorporated), EPF, Khazanah Nasional Bhd and PNB, had also pursued investment opportunities locally and abroad.

"But for the past two to three years, we have set priorities. In the early stage, I immediately set 20 per cent for domestic investment.

"This is being increased according to their readiness and capability.

"That is why we can mobilise GLICs to (invest) a total of RM150 billion over the next few years.

"We cannot deny that some, or a large part, of overseas investments generate high profits," he said.

Anwar also said the Government-linked Enterprises Activation and Reform Programme (GEAR-uP) remained on schedule, despite concerns over the pace of fund deployment.

He said, based on the GLICs' planning, disbursement would pick up at the end of this year and next year.

"Based on the latest developments and reports, it appears to still be on schedule.

"The first year involved a lot of planning and study.

"Learning from experience, they are now more cautious in making investment decisions," he said.

He said the programme's strength lay in the total ban on any political figure interfering in deciding projects and project priorities.

"Projects must be determined by an investment body made up of professionals with specific expertise," he said.