New Straits Times - - BUSINESS -

Te­naga Na­sional Bhd, Time dot­Com Bhd and Malaysia Air­ports Hold­ings Bhd.

Khazanah’s to­tal in­vest­ments in 2017 had a com­bined re­al­is­able as­set value (RAV) of RM157.2 bil­lion and net worth ad­justed value of RM115.6 bil­lion.

When its an­nual re­port was re­leased in Jan­uary last year, the sov­er­eign fund re­ported a pre­tax profit of RM2.9 bil­lion, an in­crease of 81.3 per cent, from RM1.6 bil­lion in 2016.

Khazanah has in­vest­ments in more than 100 com­pa­nies across mul­ti­ple sec­tors, in­dus­tries and ge­ogra­phies, ei­ther di­rectly or in­di­rectly through own­er­ship of shares.

About 55 per cent of its RAV by geo­graphic ex­po­sure is in Malaysia.

The sov­er­eign fund, by un­der­tak­ing strate­gic in­vest­ments on be­half of the na­tion, plays a cat­alytic role in driv­ing var­i­ous strate­gic in­dus­tries and na­tional ini­tia­tives in­volv­ing sec­tors such as power, telecom­mu­ni­ca­tions, fi­nance, health­care, avi­a­tion, in­fra­struc­ture, leisure and tourism, and prop­erty.

MIDF head of re­search Mohd Redza Ab­dul Rahman said the The de­cline in mar­ket cap­i­tal­i­sa­tion to­talling RM192.85b by com­pa­nies listed on Bursa Malaysia last year mar­ket started to pull back be­tween May and June last year as rate hikes in the US re­sulted in an out­flow of for­eign funds from both the bond and equities mar­kets.

He said lo­cal mar­kets staged some re­cov­ery but ex­ter­nal geopo­lit­i­cal con­cerns such as the S-China trade war, Brexit and a de­cline in com­mod­ity prices af­fected mar­ket sen­ti­ment.

“The fric­tion (be­tween the US and China) last year was ap­par­ent, af­fect­ing busi­nesses and the over­all global mar­ket sen­ti­ments,” said Bank Is­lam Malaysia Bhd chief econ­o­mist Dr Mohd Afzanizam Ab­dul Rashid.

Fol­low­ing the 14th Gen­eral Elec­tion in May last year, Khazanah’s board mem­bers of­fered to re­sign in July to fa­cil­i­tate a smooth tran­si­tion of power to the new lead­er­ship un­der the Pakatan Hara­pan gov­ern­ment.

Khazanah’s cur­rent manag­ing di­rec­tor is Datuk Shahril Ridza Ridzuan.

The other board mem­bers in­clude Eco­nomic Af­fairs Min­is­ter Datuk Seri Azmin Ali, for­mer Petronas chair­man Tan Sri Mohd Hassan Mar­i­can, for­mer Bank Ne­gara Malaysia deputy gover­nor Dr Sukh­dave Singh and for­mer Se­cu­ri­ties Com­mis­sion ex­ec­u­tive di­rec­tor Goh Ching Yin.

In late Novem­ber, Khazanah dis­posed of 1.4 bil­lion shares in IHH Health­care, rep­re­sent­ing a 16 per cent stake, to Mit­sui & Co Ltd of Ja­pan for RM8.42 bil­lion.

The dis­posal at RM6 per share would re­duce Khazanah’s stake in IHH to 26.05 per cent.

The dis­posal is slated for com­ple­tion in the first-quar­ter of this year.

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