SOLID TEAM
KHAZANAH Nasional Bhd’s new five-member board of directors is set to provide the dynamics needed by the sovereign wealth fund to fulfil its objectives and elevate to greater heights, say economists.
THE five new Khazanah Nasional Bhd board members will provide the dynamics the sovereign wealth fund needs to work with the government, said economists.
Alliance Bank Malaysia Bhd chief economist Manokaran Mottain said a major investment company such as Khazanah would benefit from the dynamics of a new management team.
“You need a dynamic team that can work with the administration. It is logical to see a change in the board of directors as a change in leadership will usually result in a change of management.
“Khazanah’s corporate governance is a serious issue and needs to be addressed, and this is where (board members) Sukhdave Singh and Goh Ching Yin will play a major role in making the right regulatory changes,” he told NST Business.
Manokaran said another wellknown board member, Tan Sri Hassan Marican, was well-versed in local and overseas investments and would also be able to help return investor confidence.
Prime Minister Tun Dr Mahathir Mohamed recently criticised Khazanah for deviating from its original purpose, which was to support Bumiputera equity rather than becoming a convenient vehicle to reward politicians and non-professionals with positions and lucrative compensation packages.
Khazanah has an estimated net investments of RM115.6 billion.
On whether Dr Mahathir’s role as Khazanah chairman would create conflict of interest, Manokaran said there should not be any problem as certain decisions needed his involvement, especially major investments.
A research head who did not want to be named said the prime minister had always been the chairman of Khazanah.
“This ensures that the government’s strategic investment arm fulfils its objectives. With the prime minister and economic affairs minister in the board, this will create efficiency.
“(Economic Affairs Minister Datuk Seri) Azmin Ali will be able to provide input on economic strategies and link the economic needs of the country to areas where Khazanah needs to operate, while tracking its performance to ensure that the plans run its course.”
He said former Bank Negara Malaysia deputy governor Sukhdave and former Securities Commission executive director Goh would provide the essence of proper governance, particularly on investment and execution.
Meanwhile, Hassan, the former Petroliam Nasional Bhd president and chief executive officer, would be able to impart his experience and wisdom.
“The appointments are in line with the government’s focus on good corporate governance while ensuring that changes to Khazanah’s mandate and investment strategies are implemented in an efficient manner,” he added.
The government has come under fire for breaking its election promise by appointing politicians as Khazanah directors.
Asli Centre of Public Policy Studies chairman Tan Sri Ramon Navaratnam deemed Khazanah’s new appointees as first rate but said it would be preferable if the chairman was not the prime minister.
“After all, the chairman can always consult the prime minister for advice. The prime minister must not be involved in day-today operations as chairman. He has other priorities in running the government,” he added.