5.17pc

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.