THE government only allowed Halliburton Manufacturing and Technology (M) Sdn Bhd to operate in Malaysia after it was convinced that its allied company in the US was no longer involved in arms sales.

Deputy International Trade and Industry Minister Datuk Jacob Dungau Sagan said the licence for the company to manufacture oil and gas-related equipment and oil well completion products in Johor was approved in April last year.

He said Halliburton stopped supplying weapons and military equipment to the US army in Iraq last year.

"Halliburton is one of the five world-renowned companies manufacturing equipment and products related to the oil and gas industry," he said.

Replying to Datuk Mukhriz Mahathir (BN-Jerlun), Jacob said it was the government's policy to encourage foreign investors in selected high-technology industries to operate here.
"We feel foreign investments in sectors such as oil and gas would help the country become a manufacturing hub producing top quality materials or products in that particular industry," he said.

To a supplementary question from Mukhriz, Jacob said the government did not deny Hallliburton's involvement in supplying weapons to the US army in Iraq, which has led to the death of over a million Iraqis since 2003.

He said Halliburton was established in 1919 under the name Halliburton Oil Well Cementing Company.

It later started several subsidiaries, one of which was involved in providing technology and equipment to the American army.

"Due to mismanagement issues, the company sold several of its subsidiaries, including the company involved with military-related businesses," Jacob said.