Khazanah Nasional Berhad is the sovereign wealth fund of the Government of Malaysia, entrusted with growing the nation's long-term wealth via distinct commercial and strategic objectives. Khazanah's commercial objective is to grow financial assets and diversify revenue sources for the nation, while its strategic objective is to hold strategic assets that bring long-term economic benefits. Khazanah is guided by its investment philosophy which emphasises attaining appropriate risk-adjusted financial returns, generating sustainable returns, and integrating ethical and responsible investing considerations.
|Sovereign wealth fund investment company|
|Industry||Sovereign wealth fund|
|Headquarters||Kuala Lumpur, Malaysia|
|Mahathir Mohamad, Chairman |
Shahril Ridza Ridzuan, managing director
|Revenue||Profit Before Tax: RM2.89 billion (2017)|
|Total assets||Realiasable Asset Value: RM157.2 billion (2017)|
|Owner||Government of Malaysia|
|Parent||Malaysian Ministry of Finance|
Khazanah is a member of the International Forum of Sovereign Wealth Funds, which maintains and promotes the Santiago Principles on best practices in managing sovereign wealth funds. It is also a signatory of the United Nations-supported Principles for Responsible Investment (UNPRI), signatory of the Malaysian Code for Institutional Investors and a member of the Institutional Investor Council Malaysia (IIC), member of FCLTGlobal (Focusing Capital on the Long Term), and signatory of the Malaysian Anti-Corruption Commission’s (MACC) Corporate Integrity Pledge.
Khazanah was incorporated under the Companies Act, 1965 in Malaysia on 3 September 1993 as a public limited company and commenced operations a year later. Khazanah is owned by the Malaysian government and administered by the Minister of Finance Incorporated, except for one share held by the Federal Land Commissioner. It is governed by a board of directors comprising representatives from the Government and the corporate sector with diverse professional backgrounds and expertise.
In 2018, Khazanah registered a proforma Loss Before Tax of RM6.271 billion . Its portfolio realisable asset value (RAV) declined to RM136 billion from RM157 billion in 2017, while its portfolio net worth adjusted (NWA) declined to RM91 billion from RM116 billion in 2017.
Khazanah was incorporated under the Companies Act 1965 on 3 September 1993 as a public limited company and commenced operations a year later. Except for one share owned by the Federal Land Commissioner, all the share capital of Khazanah is owned by the Minister of Finance Incorporated, a body incorporated pursuant to the Minister of Finance (Incorporation) Act 1957.
A refreshed mandate
In 2018, the Government of Malaysia initiated a corporate restructuring and reorganisation of Khazanah, which involved leadership changes, a refresh of its mandate and objectives, and a review and revaluation of its investments. The leadership changes saw the appointment of Datuk Shahril Ridza Ridzuan as managing director.
Leadership and governanceEdit
- Board of directors
Khazanah is governed by its board of directors, which is led by Tun Dr. Mahathir Mohamad, the prime minister of Malaysia, as chairman of the board. The board members comprise representatives from the Government as well as the corporate sector with diverse professional backgrounds and expertise. The managing director reports to the board.
|Chairman||Year appointed||Managing director||Year appointed|
|Tun Dr. Mahathir Mohamad||1994||Tan Sri Dato' Mohd Sheriff Mohd Kassim||1994|
|Tun Abdullah Ahmad Badawi||2003||Dato' Anwar Aji||2003|
|Dato' Sri Mohd Najib Abdul Razak||2009||Tan Sri Datuk Wira Azman Hj Mokhtar||2004|
|Tun Dr. Mahathir Mohamad||2018||Datuk Shahril Ridza Ridzuan||2018|
The board meets regularly and is ultimately accountable and responsible for Khazanah's overall governance and performance. A Board Charter sets out the roles and responsibilities of the board in overseeing the management of Khazanah.
Khazanah is guided by a framework that establishes a responsibility, authority and governance structure. Its Governance and Risk Management Framework comprises a Risk Management Policy, Schedule of Matters for the Board, Limits of Authority for the management, Code of Conduct for employees, and operational Policies and Procedures.
- Board members
- Dato' Sri Mohamed Azmin Ali, Minister of Economic Affairs of Malaysia
- Tan Sri Dato' Sri Mohd Hassan Merican, former President and CEO of Petronas
- Dr. Sukhdave Singh, former deputy governor of Bank Negara Malaysia
- Mr. Goh Ching Yin, independent and non-executive director at Shangri-La Hotels (Malaysia) Bhd
- Management team
- Managing Director – Datuk Shahril Ridza Ridzuan
- Deputy managing director, executive director, investments, and head of strategic management unit, MD's Office – Ahmad Zulqarnain Onn
- Deputy managing director, executive director, investments, and head of investments – Tengku Dato’ Sri Azmil Zahruddin Raja Abdul Aziz
- Executive director, investments and head of Khazanah research & investment strategy – Datuk Hisham Hamdan
- Executive director, investments – Nik Rizal Kamil 
- Executive director, investments – Roni Lihawa Abdul Wahab 
- Executive director, investments – Serena Tan Mei Shwen 
- Executive director, Khazanah Nasional Consulting (Beijing) Company Limited – Bryan Lim
- Executive director, investments – Amran Hafiz Affifudin
- Executive director, Khazanah India Advisors Pte Ltd - Chinta Bhagat
- Executive director, MD's office and head of MD's office – Jiv Sammanthan
- Executive director, MD's office and head of special projects office – Mohd Izani Ashari
- Director, MD's office and chief risk officer – Suhana Dewi Selamat 
- Director, finance and chief financial officer – Faridah Bakar Ali 
- Executive director, corporate & support services, company secretary, and head, legal – Dato' Mohamed Nasri Sallehuddin
- Executive director, strategic human capital management and head of strategic human capital management – Latifah Daud
- Agrifood Resources (100%)
- Malaysian Agrifood Corp (MAFC) (100%)
- Blue Archipelago (100%)
- Biotropics (100%)
- The Holstein Milk Company (30%)
Creative & Media
- Granatum Ventures (100%)
- ASTRO Malaysia Holdings (20.7%)
- Iskandar Malaysia Studios (99.4% owned by Granatum Ventures)
- CIMB Group (27.3%)
- IDFC (9.5%)
- Avicennia Capital (100%)
- Sun Life Malaysia Assurance (49% owned by Avicennia Capital)
- Sun Life Malaysia Takaful (49% owned by Avicennia Capital)
- Acibadem Sigorta (100% owned by Avicennia Capital)
- ACR Capital (24%)
- Jadwa Investment (10.3%)
- Bank Muamalat (30%)
- ValueCap (33.3%)
- Fajr Capital (19.1%)
- BDO Unibank (3.9%)
- IHH Healthcare (42.3%)
- Acibadem (60% owned by IHH, 15% by Khazanah)
- ReGen (60%)
Infrastructure & Construction
- UEM Group (100%)
- PLUS Malaysia (51% owned by UEM Group)
- UEM Builders (100% owned by UEM Group)
- Cement Industries of Malaysia (CIMA) (100% owned by UEM Group)
- UEM Edgenta (69.1% owned by UEM Group)
Innovation & Technology
- Silterra Malaysia (100%)
- Alibaba Group (0.2%)
- WeLab (12.6%)
- Fractal Analytics (35.9%)
- SEA (2.3%)
- Koubei (1%)
- Infosys (0.2%)
- Xeraya Capital (100%)
Leisure & Tourism
- Themed Attractions Resorts & Hotels (100%)
- Tenaga Nasional (28.9%)
- Shuaibah Water & Electricity Company (6% owned by Tenaga Nasional, 12% by Khazanah)
- UEM Sunrise (66.1% owned by UEM Group)
- Iskandar Investment Berhad (60%)
- Iskandar Ventures (100%)
- Medini Iskandar Malaysia (40% owned by Iskandar Ventures, 20% owned by Iskandar Investment Berhad)
- M+S Pte Ltd (60%)
- Sunway Iskandar (40%)
- Pulau Indah Ventures (50%)
- Southern Marina (30%)
- Putrajaya Holdings (15.6%)
- 8990 Holdings (8.6%)
- Cenviro (100%)
- Cenergi Southeast Asia (92.9%)
- Beijing Enterprises Water Group (4.6%)
- Axiata (37.3%)
- Telekom Malaysia (26.2%)
- edotco (10.6% owned by Khazanah, 63% owned by Axiata)
- Pulau Kapas Ventures (30%)
- TIME dotCom (30.5% owned by Pulau Kapas Ventures, 11.2% by Khazanah)
- John Keells (10.2%)
- LeapEd (100%)
- i2M Ventures (100%)
- International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
- "Khazanah Annual Review 2019". Khazanah Nasional Berhad.
- "Khazanah Annual Review 2019 presentation".
- "Khazanah appoints Datuk Shahril Ridza Ridzuan as Managing Director". Khazanah Nasional Berhad. 3 August 2018.
- "Our Governance and Accountability Framework". The Khazanah Report 2017. 1 May 2018.
- "Azmin, Hassan Merican, Sukhdave appointed to Khazanah board". Bernama. Borneo Post. 30 July 2018. Retrieved 30 July 2018.
- "Khazanah announces appointments and changes to refresh and further strengthen Senior Leadership Team". 28 April 2017.
- "Tengku Hassanal Ibrahim Alam Shah Leads Recipients Of Pahang State Awards". 24 October 2016.
- "Selected portfolio of companies". Khazanah Nasional Berhad.