KHAZANAH PLEDGES GOOD GOVERNANCE

Sovereign wealth fund will forge ahead in pursuing long-term investment goals

KHAZANAH Nasional Bhd will continue to uphold good governance and strong risk management to deliver long-term sustainable returns for the country.

Prime Minister Tan Sri Muhyiddin Yassin said the sovereign wealth fund would forge ahead in pursuing its long-term investment objectives and fulfilling its mandate.

“The government will continue to lead responsibly in implementing the necessary measures to not only address the immediate challenges but to also ensure that the fundamentals of our economy remain in good stead for continued growth,” he said in its 2019 annual report.

Muhyiddin, who is also Khazanah chairman, said the government had implemented comprehensive measures to protect lives and preserve the livelihoods of all Malaysians.

“I’m fully aware that during times of uncertainty, Malaysians look to the government to provide security, safety and stability.”

He said Malaysia had been impacted by the Covid-19 pandemic and it was the government’s duty to steer the country through the current environment and ensure that the nation recovered quickly and emerged stronger.

“Rest assured, the government is doing all it can and will continue do all that is necessary. Moving forward, I am also aware Khazanah faces a tough year with the current conditions in both the global and domestic markets.

“We are living in unprecedented times, even as the world becomes more interconnected than ever.”

Managing director Shahril Ridza Ridzuan said sustainable investment returns had to be aligned with the fund’s continuing efforts to enhance sustainability practices.

“We have been tasked with growing the nation’s long-term wealth by pursuing distinct commercial and strategic objectives.

“Our ultimate goal is to sustainably increase the value of our financial assets and enhance economic outcomes to meet the nation’s needs over the generations to come.”

He said there was undoubtedly more that needed to be done, especially in meeting the challenges of these trying times posed by the Covid-19 pandemic.

“We are confident that through the collective effort of our board, management and staff, we will be able to navigate through the difficult environment and continue to deliver on our mandate.”

Khazanah posted a profit from operations of RM7.36 billion last year compared to a loss of RM6.27 billion in 2018, which was contributed by higher divestment gains, lower impairments and robust portfolio returns.

Its divestments gains increased to RM9.9 billion from RM1.4 billion previously while impairments fell to RM4.9 billion from RM7.3 billion in 2018.

Khazanah paid a RM1 billion dividend to the government last year.