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Khazanah Nasional

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Khazanah Nasional Berhad
FormerlyKhazanah Holdings Berhad (1994–1996)
Company typeState-owned
IndustrySovereign wealth fund
FoundedSeptember 3, 1993; 30 years ago (1993-09-03)
HeadquartersKuala Lumpur, Malaysia
Key people
Revenue
  • Decrease MYR 5.35 billion (2021)
  • MYR 8.36 billion (2020)
  • Decrease MYR 2.24 billion (2021)
  • MYR 5.16 billion (2020)
  • Decrease MYR 0.41 billion (2021)
  • MYR 3.27 billion (2020)
Total assets
  • Increase MYR 84.8 billion (2021)
  • MYR 81.8 billion (2020)
Total equity
  • Decrease MYR 35.3 billion (2021)
  • MYR 36.4 billion (2020)
OwnerGovernment of Malaysia
Number of employees
353 (2022)
ParentMalaysian Ministry of Finance
Subsidiaries
Websitewww.khazanah.com.my

Khazanah Nasional Berhad (lit. 'National Treasure Limited'; doing business as Khazanah Nasional or simply Khazanah) is the sovereign wealth fund of the Government of Malaysia.[2] One of the largest sovereign wealth funds in the world,[3][4] its purpose is for investing to deliver sustainable value for Malaysians. Through its investments and activities, the fund seeks to deliver sustainable economic and societal benefit for the nation. This includes achieving long-term risk-adjusted returns across the portfolio, as well as undertaking investments that catalyse new growth areas, strengthen Malaysia’s economic competitiveness, and contribute to priority socioeconomic outcomes.[5]

Khazanah is a member of the International Forum of Sovereign Wealth Funds,[6] 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), a member of the FCLT Global (Focusing Capital on the Long Term), and signatory of the Malaysian Anti-Corruption Commission's (MACC) Corporate Integrity Pledge.[7]

It 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 December 2021, the fund had US$30.5 billion in assets under management.[8][9]

History

Khazanah was incorporated under the Malaysian Companies Act 1965 on 3 September 1993 as a public limited company and commenced operations a year later to manage and maximise the return of government assets and equities,[10][11] thus taking over the functions of the Minister of Finance Incorporated, which administered the fund.[12][13]

In 2004, Khazanah became a regular issuer in the global capital markets and supporting Malaysia’s aspiration in being the leading hub for Islamic finance through landmark transactions. This include the world’s first exchangeable sukuk and the country's first sustainable and responsible investment sukuk.[14] In May the same year, the Malaysian Government announces a strategic revamp for Khazanah. The revamp saws Khazanah received a new mandate from the government to be an active shareholder while driving transformation of the Malaysian government-linked companies (GLCs).[15][16]

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.[17][18][19]

In April 2020, Khazanah announced it was contributing RM20 million in total to support the relief efforts in response to the ongoing worldwide COVID-19 pandemic.[20]

On March 16, 2023, Khazanah launched a new initiative called the Future Malaysia Program, under its Dana Impak mandate. The initiative was introduced to support the local ecosystem of entrepreneurs, start-ups, venture funds, and corporate venture programmes through its local and international partners.[21][22][23]

The fund assigned its inaugural issuer credit rating of A3 and A- from Moody's Investors Service and S&P Global Ratings, in April 2023, respectively.[24][25][26][27]

Investments

Khazanah pursues its overall mandate through its 4 investment structures which consists of Investments portfolio, the Dana Impak portfolio, developmental assets and special situations.[28]

1990s

In 1995, Khazanah acquire 40% of majority stake in Putrajaya Holdings to undertake the development of Putrajaya. In 1996, the fund formed a joint venture with Bank Industri Berhad and Wafer Technology to develop local expertise in wafer fabrication, which is a core area in the Malaysian semiconductor industry.[29]

In September the same year, Khazanah, through its agreement deal with Usaha Tegas, announced it has acquired 15 per cent of Measat Broadcast Network Systems Sdn. Bhd., the principal owner of Astro satellite television through the subscription of new shares.[30][31]

Khazanah began issuing a RM1 billion bond where it was the first of a series of bonds aimed at providing a benchmark yield curve.[32]

On December 5, 1997, Khazanah signed a co-operation agreement with British Aerospace for a partnership to develop Malaysia's capability in designing and manufacturing of aerospace products, while enablling Malaysian companies received access to international aerospace work and future aircraft programmes.[33]

2000s

In May 2000, Khazanah invested 30% of stake in telecommunications company, Time dotCom Berhad for investors.[34]

In 2001, Khazanah through its wholly-owned subsidiary, Syarikat Danasaham acquire UEM Group for RM3.8 billion. The acquisition aims to recover UEM and heavily-indebted Renong.[35]

2010s

2011 saw the establishment of M+S Pte. Ltd., a joint-venture between Khazanah and Singaporean investment holding arm, Temasek Holdings. The joint investments saw both Khazanah and Temasek undertaking projects in Iskandar Malaysia and Singapore. Khazanah owns 60% of the joint-venture company while Temasek owns the remaining 40%.[36][37]

In August 2012, Khazanah's wholly-owned subsidiary, Themed Attractions and Resorts invests in Puteri Harbour Family Theme Park for RM115 million.[38]

In August 2014, Khazanah announced its intention to purchase the remaining ownership of Malaysia Airlines from minority shareholders and delist the airline from Malaysia's stock exchange, thereby renationalising the airline.[39]

In July 2019, they targeted to expanding its investment exposure in the United States and looking to invest primarily in technology firms utilising data analytics.[40]

2020s

In 2021, Khazanah allocates RM6 billion investments through its Dana Impak. The allocation was made to improving household incomes and achieve other socio-economic outcomes.[41]

Khazanah announced in September 2022 that it will eyeing potential investments in Southeast Asia and India while looking at the right time to execute them.[42][43]

In April 2023, Khazanah invests RM40 billion in Indian logistics company, Xpressbees.[44][45][46]

Sustainability

In its sustainability framework that launched in 10 June 2022,[47] Khazanah have set a target of achieving carbon neutral operations by the end of 2023. Another environmental sustainability target is also to aim for net zero emissions by 2050.[48][49]

See also

References

  1. ^ "Khazanah appoints Dato' Amirul Feisal Wan Zahir as Managing Director" (Press Release). Khazanah Nasional. 29 June 2021. Retrieved 23 April 2022.
  2. ^ Zuraimi Abdullah (23 March 2023). "Is Khazanah Nasional's star dimming?". New Straits Times. Retrieved 19 April 2023.
  3. ^ Jikon Lai (29 March 2012). "Khazanah Nasional: Malaysia's treasure trove". Taylor & Francis Online. Retrieved 23 April 2017.
  4. ^ Usman Hayat (30 July 2013). "Malaysia's Khazanah: Not Just a SWF But a "Nation Building Institution"". CFA Institute. Retrieved 23 April 2018.
  5. ^ "Khazanah continues growing its portfolio value, announces long-term strategies towards Advancing Malaysia". Khazanah Nasional. 2 March 2022. Retrieved 23 April 2022.
  6. ^ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
  7. ^ "The Khaznah Report 2020: INVESTING FOR OUR FUTURE" (PDF). Khazanah Nasional. 7 June 2021. Retrieved 3 May 2022.
  8. ^ "The Khazanah Report 2021" (PDF). Khazanah Nasional. 28 April 2022. Retrieved 20 April 2023.
  9. ^ Shusi He (27 November 2022). "Malaysia's Khazanah highlights challenges in driving alpha under transition models". Asian Investor. Retrieved 20 April 2023.
  10. ^ "Khazanah tumpu pelaburan baru" (in Malay). Berita Harian. 26 July 1994. Retrieved 23 April 2022.
  11. ^ Kartini Abd. Kadir (28 April 1994). "Khazanah to start operations in June". Business Times. Retrieved 23 April 2022.
  12. ^ Anna Taing (28 April 1994). "Timely measure to streamline govt assets management". Business Times. Retrieved 23 April 2022.
  13. ^ "Better management of MoF functions". New Straits Times. 21 April 1994. Retrieved 23 April 2022.
  14. ^ Syafiqah Salim (16 November 2021). "Khazanah-backed SPV to double Islamic bond issuance to RM20b". The Edge Markets. Retrieved 30 April 2022.
  15. ^ Mohd Azlan Jaafar (15 May 2004). "Khazanah dirombak" (in Malay). Berita Harian. Retrieved 23 April 2022.
  16. ^ Balan Moses (15 May 2004). "Khazanah set to become giant investment house". New Straits Times. Retrieved 23 April 2022.
  17. ^ Ng Min Shen (30 July 2018). "Khazanah's changes 'clearing the deck for restructuring'". The Malaysian Reserve. Retrieved 20 April 2019.
  18. ^ Ainaa Aiman; Melissa Darlyne Chow (10 October 2018). "Asset restructuring a normal procedure, says Khazanah MD". Free Malaysia Today. Retrieved 20 April 2019.
  19. ^ "UPDATE 1-Malaysia's Mahathir says Khazanah resignations clear the way for 'restructuring'". Reuters. 27 July 2018. Retrieved 20 April 2019.
  20. ^ "Khazanah contributes RM20 million to the fight against COVID-19" (Press Release). Khazanah Nasional. 6 April 2020. Retrieved 23 April 2020.
  21. ^ "Khazanah launches Future Malaysia Programme to support startup ecosystem". The Star Online. 16 March 2023. Retrieved 10 May 2023.
  22. ^ "Khazanah's Future Malaysia Programme to spur local start-up ecosystem". The Malaysian Reserve. 16 March 2023. Retrieved 10 May 2023.
  23. ^ "Khazanah launches Future Malaysia Programme under Dana Impak to spur local start-up ecosystem". NST Business. New Straits Times. 16 March 2023. Retrieved 10 May 2023.
  24. ^ "Khazanah assigned A3/A- by international credit rating agencies Moody's and S&P". The Star Online. 28 April 2023. Retrieved 3 May 2023.
  25. ^ Izzul Ikram (27 April 2023). "Khazanah assigned A3 rating by Moody's, A- by S&P Global". The Edge Markets. Retrieved 3 May 2023.
  26. ^ Mahanum Abdul Aziz (27 April 2023). "Khazanah dapat penarafan A3, A- daripada Moody's dan S&P" (in Malay). Berita Harian. Retrieved 3 May 2023.
  27. ^ "Khazanah diberi penarafan A3, A- oleh Moody's dan S&P" (in Malay). Utusan Malaysia. 28 April 2023. Retrieved 3 May 2023.
  28. ^ "Investment policy" (PDF). Khazanah Nasional. Retrieved 23 April 2023.
  29. ^ "Khazanah to develop skills in wafer fabrication with BIB". New Straits Times. 15 June 1996. Retrieved 23 April 2022.
  30. ^ Zulkifli Othman (17 September 1996). "Khazanah acquires 15pc stake in Measat Broadcast". Business Times. Retrieved 23 April 2022.
  31. ^ Baidura Ahmad (17 September 1996). "Khazanah buys 15pc stake in Measat Broadcast Network". New Straits Times. Retrieved 23 April 2022.
  32. ^ Kasmiah Mustapha (11 September 1997). "Khazanah Nasional to issue RM1 billion bond on Sept 18". New Straits Times. Retrieved 23 April 2022.
  33. ^ Sabry Sharif (6 December 1997). "Khazanah to enter commercial jet industry with BAe deal". New Straits Times. Retrieved 23 April 2022.
  34. ^ Dzulkfley Zanudin; Azmi Md Deros; Shamshul Azree Samshir (17 May 2000). "Khazanah beli ekuiti Time dotCom demi pelabur: PM" (in Malay). Berita Harian. Retrieved 23 April 2022.
  35. ^ "Pengambilalihan bertujuan pulihkan UEM-Renong" (in Malay). Berita Minggu. 29 July 2001. Retrieved 23 April 2022.
  36. ^ Eileen Ng; Lydia Gomez; Ili Liyana Mokhtar (3 November 2011). "'Benefits in S'pore venture'". New Straits Times. Retrieved 23 April 2022.
  37. ^ "Pembangunan Tanah Milik M-S PTE LTD Kini Pada Peringkat Perancangan" (in Malay). mStar Online. 2 November 2011. Retrieved 23 April 2018.
  38. ^ Lee, Liz (1 August 2012). "Khazanah invests RM115mil in theme park in Nusajaya". The Star. Malaysia. Retrieved 23 September 2012.
  39. ^ Jennifer Meszaros (12 August 2014). "State Fund Khazanah To Take Over Malaysia Airlines". AINonline. Retrieved 23 April 2019.
  40. ^ "Khazanah to expand investment exposure in the US". The Malay Mail. 6 July 2019. Retrieved 23 April 2020.
  41. ^ "Khazanah allocates RM6b investments via Dana Impak". The Malaysian Reserve. 7 October 2021. Retrieved 23 April 2022.
  42. ^ Hayatun Razak (21 September 2022). "Khazanah Nasional eyes investments in Southeast Asia and India". The Sun Daily. Retrieved 23 April 2023.
  43. ^ "Khazanah teroka potensi pelaburan baharu di Asia Tenggara" (in Malay). Sinar Harian. 21 September 2022. Retrieved 3 May 2023.
  44. ^ Anjali Ghodvaidya (28 May 2023). "Malaysia's Khazanah invests $40m in Indian logistics unicorn Xpressbees". DealStreet Asia. Retrieved 10 May 2023.
  45. ^ Aakansha (28 April 2023). "The Malaysian company Khazanah invests $40 million in Xpressbees". Business Outreach. Retrieved 10 May 2023.
  46. ^ Tim Burroughs (2 May 2023). "Khazanah commits $40m to India's Xpressbees". AVCJ. Retrieved 10 May 2023.
  47. ^ "Khazanah lancar sasaran rangka kerja lestari" (in Malay). Harian Metro. 10 June 2022. Retrieved 23 April 2023.
  48. ^ "Khazanah launches sustainability framework and targets" (Press Release). Khazanah Nasional. 10 June 2022. Retrieved 20 April 2023.
  49. ^ Izzul Ikram (10 June 2022). "Khazanah to achieve carbon-neutral operations next year in line with its sustainability framework". The Edge Markets. Retrieved 20 April 2023.
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