Khazanah sees return to profitability in 2019

KUALA LUMPUR: Khazanah Nasional Bhd expects to return to profitability in the financial year ending Dec 31, 2019, on the back of low impairments and better market outlook.

Managing director Datuk Shahril Ridza Ridzuan said the sovereign wealth fund’s performance in 2018 was impacted by several key global and domestic developments in the economic and social spheres.

“At the same time, the government initiated a reset of Khazanah which involved significant changes, including a fresh mandate.

“The organisational restructuring we are currently undertaking will enable us to execute and deliver on our role of growing Malaysia’s long-term wealth, beginning this year,” he told reporters during Khazanah’s Annual Review 2019 yesterday.

Khazanah recorded a pre-tax loss of RM6. 27 billion in 2018 compared with a pre-tax profit of RM2.89 billion a year earlier.

Last year, the fund’s profitability was affected due to fewer divestments, reduced dividend income and higher impairments, during a period of transition for Khazanah in an unfavourable market.

Khazanah’s portfolio value as measured by its net worth adjusted (NWA) declined to RM91 billion as at Dec 31, 2018, a 21.6 per cent drop from RM116 billion year-on-year.

In 2018, the sovereign wealth fund had declared a dividend of RM1.5 billion. — Bernama